CKA eyes London tower sale

Finance | Bloomberg 11 Jun 2021

CK Asset (1113)is weighing a sale ofUBS Group AG's London headquarters, 5 Broadgate, for over 1 billion pounds (HK$10.94 billion).

The developer held initial discussions with a handful of potential buyers.

CK Assetbought5 Broadgate in 2018 for 1 billion pounds and would only agree on a sale if bids exceed that level. No agreements have been reached and there's no certainty a transaction will take place.

Demand for trophy London office buildings with long leases has held up through the pandemic as investors seek long-term income that offers a wide premium over returns on government debt. UBS is committed to the building, which has more than 700,000 square feet of space, until at least 2035, according to a 2018statementfromBritish Land which developed the property.

The Swiss bank moved into the silver building after its completion in 2015 from a series of smaller offices on the Broadgate campus. It has space for about 5,000 workers across its 12 office floors.

London's biggest real estate investors have been holding off on dealmaking as international travel restrictions have hindered overseas buyers' ability to inspect properties.

But as coronavirus restrictions in the UK are eased, more are being put up for sale.

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