09 Jul 2013, 2:23 pm
The transaction represents the first purchase by a Chinese insurer in the UK. It was bought on a net yield of 6.1% which is "slightly" above average for the City according to the Financial Times.
The entire building is let to the Society of Lloyds on a lease which expires in 2031.
Director of Savills Central London team Jon Crossfield said in a statement that the deal was a "potentially landmark transaction" given that it is the first by a Chinese insurance company in the UK. "It is a high profile and confident entry to the market for them and further illustrates the dominance of overseas investors in London at present,” he said.
According to Financial Times, data from Jones Lang LaSalle showed that Asian companies and government funds spent £1.25 billion in the Square Mile last year. This compares to £135m in 2009, or 3.3% of the investment market. In the first three months of this year, they were behind half of all spending in the City commercial property market with £595m according to the data.
