Chinese insurer Hexie snaps up US$1.4 billion Beijing tower from SK Group in largest office deal since onset of coronavirus pandemic
- Transaction could potentially become the largest deal for the year for a single commercial real estate project in China, Cushman says
- Overall performance of Beijing investment market was stable in first quarter: Savills
The deal is the biggest transaction for an office building in China since the onset of the coronavirus pandemic, according to the buyer's adviser Cushman & Wakefield. It could potentially become the largest deal for the year for a single commercial real estate project in China, Cushman said on Tuesday, without mentioning the second-highest deal value.
“The Beijing market has long been a key focus for investors, where major transactions have exceeded 50 billion yuan [US$7.8 billion] annually for three years in a row,” said Alvin Yip, president of Cushman’s Greater China capital markets team.
The SK Tower transaction is particularly significant, given the 35-storey office building’s prime location in the heart of Beijing’s central business district, right next to the Chang’an Avenue thoroughfare.
Previously known as Capital Tower, the building – with 107,627 square metres (1.2 million square feet) of building area – was sold by Singapore-based developer CapitaLand to SK Group in 2008. That deal was also advised by Cushman.