China’s CC Land pays a premium price for the London Cheesegrater

The Leadenhall Building in the City of London, more commonly known as "the Cheesegrater", has been sold to a Chinese firm for £1.2bn ($1.4bn).

The 225m-tall tower was owned by British Land and Canada’s Oxford Properties, and is now part of the portfolio of Chinese developer CC Land. The price was considerably higher than the most recent valuation of £915m, made in September 2016.

In November 2016, British Land announced a half-year pre-tax loss of £205m ($255m), which it blamed on the fall in the value of commercial property in the wake of June’s vote to leave the EU.

British Land and Oxford Properties developed Leadenhall as am equal joint venture.
Construction started in early 2011 and was completed in summer 2014.

Last year, the two companies announced that all floors of the building had been leased, achieving "record rents" for the City of more than £100 ($121) per square foot. British Land says the annualised contracted rent for the building is currently £40m ($48m).

Tim Roberts, head of offices and residential at British Land, said: "British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop The Leadenhall Building to generate a high quality, long-term income stream. It’s a decision that has really paid off."

The Cheesegrater made headlines in January 2015 after a number of steel bolts holding its façade on fell away from the building.

Image courtesy of British Land

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