Cheesegrater sells to CC Land for £1.15bn

British Land and Oxford Properties have exchanged contracts with CC Land for the sale of the Cheesegrater for £1.15bn. The investment vehicle of tycoon Cheung Chung Kiu agreed to buy all the shares in the company that holds the Leadenhall Building, EC3. The price paid reflects a net initial yield of about 3.5%. British Land and Oxford Properties developed and owned the building as an investment in a 50/50 joint venture formed in 2010. British Land launched a sale of its 50% stake in the building through Cushman & Wakefield and Eastdil Secured at the end of last year. Oxford Properties subsequently decided to also consider selling its 50% stake in the building. Tim Roberts, head of offices and residential at British Land, said: “British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop the Leadenhall Building to generate a high-quality, long-term income stream. “It’s a decision which has really paid off. Through a strong, collaborative partnership, we have delivered an iconic, award-winning building let to high calibre occupiers at record City rents. This sale shows continued investor appetite for best in class, well-located property in London.” The 610,000 sq ft Leadenhall Building is fully let and achieved a record-breaking City rent of more than £100 per sq ft. The sale is subject to approval by the shareholders of CC Land. Cushman & Wakefield and Eastdil advised British Land and Oxford Properties; Savills represented CC Land. • To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette