Chinese HNA heads east again
Chinese conglomerate HNA Group is under offer to buy its second Canary Wharf office block in less than six months.
The Hainan Airlines owner has agreed terms with Brian and Mary Patricia O’Donnell’s Vico Capital to buy 17 Columbus Courtyard, E14. The 200,000 sq ft building is let to Credit Suisse for around nine years.
Knight Frank began marketing the property in October last year.
[caption id="attachment_795249" align="alignright" width="200"] HNA Group bought 30 South Colonnade, E14, for £235m last month[/caption]
Chinese conglomerate HNA Group is under offer to buy its second Canary Wharf office block in less than six months.
The Hainan Airlines owner has agreed terms with Brian and Mary Patricia O’Donnell’s Vico Capital to buy 17 Columbus Courtyard, E14. The 200,000 sq ft building is let to Credit Suisse for around nine years.
Knight Frank began marketing the property in October last year.
It was quoting £133m, reflecting a 4.75% yield, but agreed a deal with HNA prior to calling bids after the group made an offer above the asking price.
The deal comes a month after HNA made its UK debut with the £235m purchase of 30 South Colonnade, E14. It has since secured a £157m senior loan from Goldman Sachs against the building, reflecting a 65% LTV.
Volatility in the Chinese stock market and the devaluation of several Asian currencies against the dollar over the past six months had raised concerns about capital flows into London real estate from the region.
However, £1.3bn of City offices have been sold to Asian buyers in the six months since the Chinese government devalued the Yuan to calm markets.
Although new emergency regulations to halt trading should the Chinese stock markets suffer dramatic falls were twice implemented – and subsequently ditched – in the first week of 2016, a further £1.4bn of City offices are now under offer to Asian purchasers.
A source said: “Private capital is still seeking to diversify out of China even if some state-backed buyers are now more hesitant.”
For Vico Capital the sale means it has now sold almost its entire portfolio of prime London properties, which was once valued at more than £1bn.
Vico bought Columbus Courtyard in 2005 for £125m. It sold off large parts of its portfolio after the crash of 2008 but retained Columbus Courtyard after pulling off a £107m refi in 2011 with MetLife and Duet Private Equity, now DRC Capital.
jack.sidders@estatesgazette.com @JackSidders
