A Chinese investment firm has purchased Chiswick Park, a business park on the edge of London worth nearly £800m, from Blackstone.
In what is now one the UK’s highest value property deal since the start of the financial crisis five years ago, China Investment Corporation (CIC), has agreed the fee to acquire the London offices from Blackstone.
CIC had previously head to head battle between a trio of Asian investors for the property over a year ago in December 2012, before Blackstone instead opted to re-finance the business park in February 2013.
This is the second major deal involving Blackstone in as many weeks, as it recently offloaded its share of Broadgate to the Government of Singapore Investment Corporation (GIC) in a deal worth a reported £1.7bn.
CIC had long been rumoured to be interest in acquiring the 1.1m sq ft development known as Chiswick Park business park – located five miles outside of central London.
Blackstone originally bought the property from a consortium of Aberdeen Asset Management, Schroders and Stanhope in 2011 for £480m so the deal will provide the American firm with a £250m profit after taking into account the net expenditure of £45m on Building 6.
It will still act as asset manager for the entire park for CIC, as well as retaining ownership of Building 7, an £80m office building the firm added to the park last year and which is scheduled for completion in December 2014.
CIC actually has a strong connection already with Blackstone. It owns a 9.6% stake in Blackstone after investing $3bn into the private equity group prior to its first public offering in 2007.
The CIC has been quite prominent in the London market and late last year, the $410bn CIC fund acquired Deutsche Bank’s £245m City of London headquarters, working in partnership with Invesco, the asset manager.
By: Kirsty MacGregor
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