Chinachem Group Confirms to make its Second Purchase in Prime London Office Building for £349.5m
HONG KONG SAR - Media OutReach - 30 January 2023 - Chinachem Group (the "Group") announced today that it has exchanged contracts for and completed the purchase of One New Street Square with UK-based REIT Landsec, a premium 276,502 sq ft office building in the heart of Central London, at a total consideration of £349.5 million, representing a capital value of £1,264 psf.
Completed in 2016, One New Street Square is fully let to Deloitte on a lease expiring in 2036, at a current annual net rent of £16.8m. At the point of completion, it was the first building in the world to achieve both BREEAM Outstanding and WELL Gold certification, featuring a biophilic design that incorporates 6,300 plants and 1,500 sq ft of green walls, as well as landscaped terraces and other sustainable amenities.
This is the second purchase of prime London office building by the Group in the past four months, following the purchase of the Kaleidoscope building in Farringdon in September 2022 for £158.5 million. The two buildings are less than 1km apart in an area of the City of London that is becoming a major hub for legal, TMT and other multinational businesses.
"We're delighted to have acquired One New Street Square as it is located in the strategic Central London area offering best-in-class building specifications and attractive returns." said Chinachem Group's Executive Director and CEO Donald Choi. "This is an important step forward for the Group and we intend to hold the property as a long-term investment.
"While Hong Kong will remain our home, and our core market, we intend to incrementally increase the Group's exposure in gateway cities of major international markets, so as to fulfil our business diversification objectives and build a resilient, long-term income stream."
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Since 1960, Chinachem Group has been a leading property developer in Hong Kong, with a portfolio covering residential, commercial, retail and industrial buildings for sales and investment, in addition to operating hotels, property management as well as healthcare and elderly services. The Group actively seeks to make a positive contribution to society through its adherence to the "Triple Bottom Line", a commitment that its activities will benefit People, bring Prosperity to the community and preserve the Planet. Please visit www.chinachemgroup.com/en