Chinese Estates buys Goldman Sachs London sites
Chinese Estates Holdings, a property investment and development company, is expanding its portfolio in London with plans to buy from Goldman Sachs Group two commercial buildings that form part of the bank's London headquarters. A company spokesman said the buildings were Peterborough Court and Daniel House in Fleet Street.
The sites are opposite River Court, another part of the headquarters, bought by Chinese Estates in January for GBP280 million (HK$3.55 billion).
The selling price of the properties is more than GBP300 million, according to Jones Lang LaSalle, the property agent arranging the sale.
Goldman's London offices will remain the company's European headquarters until 2026, with both buildings providing a total floor area of 370,526 square feet.
The two properties were offered for sale since last month. There had been expectations in the market that they would attract interest from overseas investors including Malaysia's Employees Provident Fund, which has bought the home of law firm Freshfields Bruckhaus Deringer in Whitefriars, across the road.
DTZ on Thursday released the findings of a survey into occupancy costs which revealed a 21 per cent rise in London's City district and a 9 per cent increase in the West End.
The substantial rises were because of a combination of rental growth from falling supply of quality space and the effect of a change in property taxes.
Total occupancy cost is defined as the average total cost of leasing prime net usable space. It includes rents and outgoings, such as maintenance costs and property taxes, if these areas are normally payable by the occupier. It excludes leasing incentives, such as rent-free periods.
