INDUSTRY NEWS

China Construction Bank buys London office for £110m

China Construction Bank has snapped up a major London office property, making it the second Chinese firm in a week to make a big money move into the UK capital.

The state owned commercial bank has purchased 111 Old Broad Street from KBC Group, a Belgian bank, for a reported £110m in an off market deal.

China Construction Bank will use the 122,880 sq ft seven storey recently refurbished property as its European HQ. As part of the deal, KBC will continue to lease a part of the property.

The firm is China’s second largest lender and is one of the country’s ‘big four’ banks. After becoming the City’s first yuan clearing bank, it decided the time was right for a move to London in order to establish a base of operations covering Europe.

The deal comes only a week after China Life bought the majority stake in 10 Upper Bank Street, in a massive £785m deal, with China Life taking a 70% stake and its partners Qatar Holdings and CWG taking a 20% and 10% interest in the property respectively.

This is the latest in major acquisitions from a Chinese based firm, last year Chinese insurer Ping An purchased the Lloyds building in a deal worth a reported £260m.

By: Kirsty MacGregor

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