Kingboard Chemical Holdings has exchanged contracts to buy WeWork’s landmark building in the City of London for £271m.
The Hong Kong-listed company has agreed to buy Moor Place, the 236,793 sq ft building at 1 Fore Street, EC2, from Brookfield for a price that reflects a net initial yield of 4.86%.
The deal is the latest in a flurry by Chinese buyers looking to take advantage of sterling-denominated assets following the collapse of the pound in recent weeks.
KCH is predominantly focused on laminating, manufacturing circuit boards and other chemical products. It has annual sales in excess of HK$30bn (£3bn) and employs around 50,000 people.
The company is in the process of creating a new business segment focusing on property and has a 3m sq ft land bank in China. It also owns a handful of commercial buildings in Guangzhou and Shanghai.
The sale of the HKR Architects-designed building is also a test of the WeWork covenant. It was put up for sale at the start of June for £290m, a price reflecting a yield of 4.5%. The purchase price is a 6.6% discount to the asking price.
Savills advised KCH. Cushman & Wakefield and Strutt & Parker advised Brookfield.
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