Hong-Kong based Wing Tai Properties have bought Commerzbank’s London HQ for £460m, in a deal which confirms the continued attractiveness of the London commercial market to Asian investors.
The property at 30 Gresham Street was sold by Samsung Life Insurance and comprises 403,000 sq.ft of prime office and retail space. Investec Plc is also a tenant. Wing Tai already own five other prime central London office buildings.
The company has made the purchase in a joint venture with Manhattan Garment Holdings, also Hong Kong-based, with each contributing £230m.
In reporting the sale Asian real estate website Mingtiandi says Asian investors buying in the UK are ‘undeterred by Brexit worries’. They add that ‘Brexit is scary, but Hong Kong yields terrify’, explaining that Hong Kong buyers are motivated by ‘good value’ London prime office yields at around 4.25% compared to average Hong Kong yields for grade A assets at 2.3%.