British Land and GIC sell UBS London office for €1.1b

UK property investor British Land and Singaporean wealth fund GIC have sold the London headquarters of Swiss bank UBS to a subsidiary of CK Asset Holdings for £1 bn (€1.1 bn).

The so-called groundscraper at 5 Broadgate in the City of London comprises more than 65,000 m2 of space over 12 floors.

The deal reflects a yield of 3.95%, according to UK press reports. It follows similar £1 bn-plus transactions in London last year for the Walkie-Talkie and Cheesegrater skyscrapers, which were both sold to Chinese buyers, as demand for trophy office buildings in the UK capital continued despite the Brexit vote.

Tim Roberts, head of offices at British Land, said: ‘This transaction is the latest example of how our strategy is creating value. We delivered a modern, truly distinctive building for UBS, located at the heart of our largest central London campus, adjacent to the forthcoming Crossrail station. We have now taken the opportunity to realise value and reallocate capital across a range of projects, and uses, to deliver the best value for our shareholders.’

Gerald Ma, a member of the executive committee of CK Asset Holdings, said: ‘5 Broadgate is a great quality asset with a high-quality tenant, and we are delighted with this investment. We are also very pleased to become a partner of British Land and GIC and share their long term vision for the entire Broadgate campus.’

5 Broadgate was designed by architectural practice Make and holds a BREEAM Excellent rating, with carbon emissions 65% lower than the previous two buildings on the site. UBS is committed to the building until 2035.

CK Asset Holdings is the flagship vehicle of the CK Hutchison Group, a Hong Kong-based multi-national conglomerate founded by tycoon Li Ka-shing. The company, formerly known as Cheung Kong Property Holdings, operates as a property developer in Hong Kong, mainland China, Singapore, the UK, continental Europe, Australia, Canada, and the US. The seller was advised on the transaction by CBRE.


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