Korean Investor Hana Financial Group has purchased One Poultry in the City of London for £185 million ($234 million), according to media outlets.
The seller was Aermont Capital, which acquired the asset in 2014 for £111 million ($140 million).
The foreign investor placed its bid for the office in September 2018.
WeWork occupies approximately 80 percent of the space.
As a result of China’s capital outflow restrictions, the current cycle, which has seen a buying spree by Mainland Chinese investors over the past five years, is drawing to a close, reported Knight Frank. As demand from China reduces, the U.K. market has returned to a sense of normality from the perspective of many long-term players including sovereign wealth funds with long-term national mandates, investors, and developers with offshore fundraising capability, whose core business is real estate. Other Asian investors, specifically from Singapore and Korea, are also stepping up their activity. This has resulted in healthier competition and a more balanced market, reducing the policy-induced market disruption. This actually bodes well for mature Chinese investors who seek long-term return for their investments. And the overseas capital will continue to focus on the U.K. office market, attracted in particular by the weak pound, said Cushman & Wakefield.
The United Kingdom office market during the third quarter recorded one of the highest levels of leasing activity in the past five years, according to Cushman & Wakefield.
The Central London market saw quarterly take-up rise to 3.5 million square feet, the highest since 2015. The increase was boosted by a number of large transactions in new/refurbished space, which accounted for two-thirds of all deals. Space under offer currently totals 3 million square feet, suggesting year-end take-up could be the highest seen in the capital since 2015.
U.K. office investment in the third quarter fell to £4.7 billion ($5.95 billion) quarter-on-quarter, 30 percent below the five-year average and the lowest since immediately after the E.U. referendum. The buyer profile remained dominated by overseas capital, which accounted for 65 percent of purchases; European investors accounted for more than half of all foreign buyers. Investment into London offices remained strong, with volumes exceeding average levels and overseas capital continuing to focus on large lot sizes.
