Hong Kong's CSI emerges as 'Gotham City' investor

By James Buckley - Friday, January 12, 2018 14:30

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Hong Kong listed developer CSI Properties has emerged as another investor in the consortium that is buying TH Real Estate’s 910,000 sq ft City development project, nicknamed Gotham City, CoStar News can reveal.

CSI, which owns and manages over 1.1m sq ft of prime commercial properties in Hong Kong and Shanghai, is teaming up with another Hong Kong developer and the owner of the Cheesegrater, CC Land, to buy 40 Leadenhall Street. It is understood that as many as four parties are involved in the consortium.

As part of the deal, TH Real Estate will retain a minority stake in the Leadenhall Triangle development, as well as a development manager role. TH RE had been looking for around £365m for the site and previously been close to tying up a deal to sell it to Soho China.

Cushman & Wakefield was instructed to find a buyer for the 2.5-acre site last year but TH Real Estate since decided to begin construction work on the scheme whilst concurrently pursuing a sale.   

In 2014, TH Real Estate, then Henderson Global Investors, secured a resolution to grant planning permission from the City of London for Make-designed plans for a 910,000 sq ft stepped development at 40 Leadenhall Street, EC3. The scheme, which will cost £391m to develop, will vary in height between seven and 34 office storeys, with two additional basement levels, and a roof level plant. The development will rise to 558ft at its highest point and include flexible retail/café and restaurant uses at ground floor level. 

The scheme, which will comprise 890,000 sq ft of offices and 20,000 sq ft of retail, will have floorplates ranging from circa 19,000 sq ft, up to 45,000 sq ft.

Bloomberg first revealed CC Land's involvement in the deal in December.

The fund manager completed its purchase of the Leadenhall Triangle site for around £183m in June 2011 through its Central London Office Fund II and Alberta Investment Management Corporation. The Leadenhall Triangle comprises 52-56 LeadenhallStreet, 49 Leadenhall Street, 22 Billiter Street, 109-114 Fenchurch Street, 100 Fenchurch Street and 9-13 Fenchurch Buildings.


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