Hong Kong investor enters U.K. market

Lloyds Banking Group has sold its London headquarters to a Chinese property investment company, Hengli Investments Holding, for an undisclosed price, marking its first purchase in the United Kingdom.

The office totals 119,742 square feet and 12 stories in Canary Wharf.

Under the terms of the sale to Hengli Investments Holding, Lloyds will lease back the 25 Gresham Street building, which it has occupied since its construction, for the next 20 years. The sale is part of the U.K. bank’s 2016 plan to cut its non-branch property portfolio by 30 percent as part of a cost-cutting drive, according to Reuters. Lloyds closed a total of 100 branches between July and October this year.

The sale follows Cheung Kei Group’s £270 million ($360 million) acquisition of 5 Churchill Place in Canary Wharf from Said Holdings.

The third quarter of 2017 saw investment of £4.82 billion ($6.3