Link REIT, Asia’s largest real estate investment trust, has bought a Canary Wharf office block for £380m.
Canary Wharf’s 25 Cabot Square, which is occupied by Morgan Stanley, is Link’s first asset in the UK.
The sale of the 17-storey building, which was previously owned by Hines, is the biggest deal to take place in London this year, real estate adviser Cushman & Wakefield said.
Martin Lay, head of city investment at Cushman & Wakefield, which advised Hines on the deal, said the sale demonstrates “green shoots of activity” after the coronavirus lockdown.
“This landmark deal confirms the enduring appeal of London office assets and the UK as a key destination for overseas investment,” Lay said.
Link said it is looking for opportunities in the UK, Singapore, Australia and Japan as it expands outside of Hong Kong and Mainland China, saying they are “transparent and liquid markets with sound legal frameworks and strong economic fundamentals.”
“The Cabot is exactly the kind of stable income-producing high-quality asset with long-term growth potential that we’re looking for,” Link’s chief executive George Hongchoy said.
“It’s a prominent, Grade A building and one of the few freehold properties in Canary Wharf.
“It’s well located with excellent connectivity and accessibility and it is almost fully occupied with long leases to high quality tenants.
“The transaction will immediately be earnings accretive to Link.”