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http://www.costar.co.uk/en/assets/news/2015/August/Hong-Kong-heavyweights-team-up-to-buy-180m-Midtown-trophy/

24/08/2015

Hong Kong families team up to buy £175m Midtown trophy

By James Buckley - Monday, August 24, 2015

Main news image
Two Hong Kong families have formed a consortium to buy 10 Fleet Place in London’s Midtown for just over £175m, CoStar News can reveal.

Crosby Investment Holdings has joined forces with Wing Tai Properties, an investment holding company, to buy the office building, which serves as the UK headquarters of CNBC Europe.

Owner Ares Management stands to make a profit on its 2013 purchase after the global alternative asset manager, along with partner Harel, put the block up for sale for £155m earlier this year.

Crosby will be the majority owner in 10 Fleet Place, taking a 75% stake in the property, while Wing Tai will own the remaining 25%, committing £47m from its own internal resources.

The property is being bought by the private companies controlled by Wing Tai’s Cheung family and Crosby’s Chen family, members of whom sit on each other’s respective boards.

The pair, which have joined forces before, predominantly investing in the textiles indistry, signed a Memorandum of Understanding to buy the property on 19 August.

Crosby Investment Holdings, which is wholly owned by Vivien Chen, who runs the Nan Fung group, made its first major property acquisition in London a year ago, buying 50 Bank Street in Canary Wharf, E14 for £153.5m.

In June, Ares instructed JLL to sell 10 Fleet Place in which CNBC Europe occupies 20,000 sq ft of television studios and offices in the 10-storey building.

The property is held in a JPUT which holds a virtual freehold of the asset for a term of 999 years from 12 December 1990.

AREA Property Partners, now Ares Management L.P., agreed terms to buy the long leasehold interest in the building in the summer of 2013 for £114.5m, reflecting a yield of 6.18%. The sale price, which completed in September 2013, reflected a capital value of £644.14 per sq ft.

Other tenants in the building include IT company Kelway and engineering group Mott MacDonald.

Private equity real estate firm CIT previously bought 10 Fleet Place from British Land for £106.77m in August 2005, reflecting an initial yield of 6%.

The building comprises 183,102 sq ft of grade A office space and produces an income of £7.2m per annum, or £39.31 per sq ft overall.

GM Real Estate is advising the buyer; JLL is acting for Ares.



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