Cheung Kei snaps up Canary Wharf office (Property Week)

2017.12.08

Cheung Kei snaps up Canary Wharf office

Chinese investor Cheung Kei Group has acquired Canary Wharf office building 5 Churchill Place from Saïd Holdings for ￡270m.

The purchase price for the former Bear Stearns headquarters (pictured) reflects a net initial yield of 5.2% and a capital value of ￡846/sq ft.

JP Morgan is the lead tenant in the 319,000 sq ft building, occupying 10 of the building's 12 floors. Time Inc, American Express, Cision Gorkana and Balfour Beatty also let space in the building.

Shenzhen-based Cheung Kei Group, which is headed by Hong Kong billionaire Chen Hongtian, made its debut UK buy with the ￡410m acquisition of 20 Canada Squarein the Canary Wharf in June.

Saïd Hodings acquired the building in January 2010 for ￡208m. "We bought this building at an attractive price when financial markets were in a stateof some turmoil," said Wafic Saïd Holdings.

"A well-let asset in Canary Wharf seemed to our board to be a sound investment at that difficult time. We are still confident in the stength of the London market, but received a compelling offer from buyer Cheung Kei Group."

Saïd Holdings was advised by Capital Real Estate Partners, Ropes & Gray and Deloitte. Cheung Kei Group was advised by JLL, Addlesshaw Goddard and EY.