Hong Kong’s Hao Tian buys City’s Corn Exchange

By James Buckley - Thursday, April 12, 2018 15:37

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Hong Kong financial services group, Hao Tian Development Group, has completed a deal to buy the Corn Exchange in the City of London for £127.65m.

The deal marks another Hong Kong entrant to the London market and sees Hao Tian pay vendor, Thai-Chinese Chinese group Reignwood Europe, around the asking price for the building at 55 Mark Lane, reflecting a yield of 5.1%.

There is £93.48m of debt secured against the building and the deal completed today.

Hao Tian is principally engaged in the business of financial services, securities investment, trading of futures, logistics and warehousing, rental and trading of construction machinery.

Reignwood put the Corn Exchange office building up for sale for around £130m last March, instructing JLL to handle the sale.

The decision to sell followed abortive negotiations to sell the building to China Taiping Insurance, a state-owned Chinese company listed on the Hong Kong Stock Exchange.

Reignwood bought the 160,000 sq ft Corn Exchange in 2013 from Credit Suisse Asset Management’s German open-ended real estate fund, CS Euroreal, for £92.5m, a net initial yield of around 6%.

Reignwood made its debut purchase in the capital in 2011 with its joint venture acquisition of 10 Trinity Square, a luxury hotel scheme it is developing with Singaporean property investment outfit KOP Properties. Planning consent was secured in April 2012 to convert the historic grade-II listed building into a 120-bedroom hotel and 41 high-end flats.

The Corn exchange was substantially refurbished six years ago and produces a total income including some vendor top-ups of more than £6.1m. The building was developed by British Land in 1996 and is currently fully let to a mix of office and retail tenants.

Addleshaw Goddard advised the vendor.

jbuckley@cosar.co.uk

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