Owner of Hong Kong’s priciest mansion completes US$530m purchase of Canary Wharf office
Cheung Kei Group, the property developer owned by the owner of Hong Kong’s most expensive mansion, has completed its £410 million (US$530 million) purchase of a landmark 12-story office building in London’s Canary Wharf, in the biggest real estate sale in the city’s key financial district since 2014.
After its acquisition, the tycoon Chen Hongtian will rename the 20 Canada Square building as Cheung Kei Centre, according to a statement.
Leases on the building could generate up to 5.35 per cent in rental yields for his Shenzhen-based company.
Chinese capital had been increasingly pouring offshore for assets and investments, in search of higher returns on concern the renminbi could lose its value at home.
“Most of these types of investment are funded offshore, so the purchase is not subject to China’s capital controls,” said Knight Frank’s head of China research David Ji.
In March, Chongqing property developer CC Land agreed to buy the Leadenhall Building in London, known affectionately as the “Cheesegrater,” for £1.135 billion, making it the largest ever Chinese purchase of British real estate.
In the same month, China Minsheng Investment Corp purchased Societe Generale’s London headquarters for £84.5 million.
Chinese capital including Hong Kong, accounted for 31.2 per cent of overseas investment in London’s central city office space last year, according to Knight Frank’s estimates.
Chen, 58, is a low-profile property tycoon, who’d amassed a fortune estimated at 18 billion yuan (US$2.7 billion) according to the 2016 Hurun Report and is a major stakeholder of Hong Kong-listed China South City Holdings.
Last year, he made headlines after buying a 9,212 sq ft mansion at 15 Gough Hill Road at The Peak in Hong Kong for HK$2.1 billion, a record price in the world’s most expensive residential market, and counting it among one of the world’s most premium addresses. In July last year, he separately bought an office tower in Hung Hum for HK$4.5 billion.