A Hong Kong-based property company has demonstrated a vote of confidence of London, by agreeing a £380 million acquisition of a Canary Wharf office block for its first UK purchase.
Link, the manager of Hong Kong-listed Link Real Estate Investment Trust, said it has agreed to buy The Cabot, 25 Cabot Square. The 17-storey 481,605 square feet building is let to a number of tenants, including Morgan Stanley.
The purchase will be welcomed by the London commercial property market, where there are some concerns about when companies will return to headquarters from the Covid-19 lockdown.
In addition investment deals were significantly quieter in the second quarter when travel restrictions made viewings and sales much trickier.
Link’s chief executive George Hongchoy said: “The Cabot is exactly the kind of stable income-producing high-quality asset with long-term growth potential that we’re looking for.”
He pointed to the site being well located and almost fully occupied with long leases to “high quality tenants”.
He added: “Going beyond our home Hong Kong and Mainland China, we’re looking at opportunities in the UK, Singapore, Australia and Japan – transparent and liquid markets with sound legal frameworks and strong economic fundamentals.”
The transaction is expected to complete on August 25.
Property firm Patrizia will provide asset management services for The Cabot. It was bought from Hines Global Reit.
