Yahoo Finance Hong Kong bidders line up for Walkie Talkie stake
Hong Kong investors are emerging as the favourites to snap up a 50pc stake in London’s Walkie Talkie skyscraper, as rules governing the exporting of Chinese money tighten.
Sources close to the sale of the building have suggested that it is likely to attract interest from Hong Kong-based private dynasties looking to put their money into a relatively stable market.
Hong Kong-listed firms Chinese Estates and Asian Growth Properties, both of which have bought in London this year are rumoured to be lining up bids. Meanwhile, CC Land, the Chinese property company which bought the Cheesegrater building from British Land earlier this year, is also thought to be drawing up plans to buy the stake in the tower, which could fetch £600m.
Other Asian investors, including Korea Investment Corporation and Singaporean investment company Temasek, have also been linked with the sale.
First round bids are expected next month. Foreign buyers have been increasingly active in the London office investment market since the UK voted to leave the European Union last June.
A falling pound has resulted in discounts for companies trading in other currencies and both Hong Kong and Chinese buyers have been particularly active, after Beijing tightened capital controls, meaning cash held abroad is at risk of repatriation.
Mike Prew, equity analyst at Jefferies, said in a note issued last week: “The Chinese Government is limiting capital export with the People’s Bank of China hiking deposit rules and the authorities are now going after overseas yuan bank deposits down to $5m. The best way to avoid forced repatriation is to store it in a building wrapped up in congealed cash in the English legal system.”
It emerged that a buyer was being sought for the stake in the tower owned by Canary Wharf Group in March. The group manages its 50pc stake on behalf of a number of foreign investors, including China Investment Corporation, the Qatar Investment Authority and Morgan Stanley, having bought the stake from developer Land Securities in 2010.
Land Securities said it plans to retain its half of the building. Earlier this week, chief executive Rob Noel ruled out any major sales of buildings this year, although added that no building is “sacrosanct”.
CBRE and Eastdil, who have been appointed to sell the stake in the tower, were not available for comment.
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