Landsec originally acquired One New Street Square in 2005 but redeveloped it in 2016. The prime office building is fully let to Deloitte until 2036 with a current annual rent of £16.8m. Colliers Valuations & Advisory team advised Chinachem Group on the acquisition, alongside Savills’ agency team.
“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.”
This is the second prime London office acquisition by the Group in the past four months, following the purchase of the Kaleidoscope building in Farringdon in September 2022 for £158.5 million.
Alistair Johnstone, co-head of Central London Valuations at Colliers said: “This is a benchmark deal for central London, where there has been limited transactional activity following the disastrous mini-budget in September last year. It highlights that there’s still liquidity for large lot sizes with strong underlying fundamentals. One New Street Square is a quality headquarters building well secured to an exceptional tenant.”
Knight Frank advised Landsec on the transaction.