Cheswick Park business park attracts sovereign bids | 31 December 2012
One of London’s most expensive commercial properties is likely to be bought using money from one of three Asian sovereign wealth funds.
Marketwatch.com reports that Cheswick Park business park has attracted government-backed bids from China, Malaysia and Korea.
It is thought that the property will be sold for an estimated £800 million, making the biggest property deal in the UK since the start of the financial crisis.
In a report for ft.com, Financial Times’ property correspondent Ed Hammond suggested that sovereign interest in commercial properties could be a good thing for the British market.
He explained: “The sovereign wealth interest in the property underlines the growing role international investors are playing in London commercial real estate. Buyers from Asia, the Middle East and North America have ploughed billions of pounds into the offices, shops and hotels in the UK capital.”
The Chinese bid is the latest to have come in for the business park. The Korean and Malaysian bids reportedly involve a mixture of sovereign wealth and pension funds. It is expected for Canadian pension funds and British investors to table bids before the property is sold off.
The owners of the property, Blackstone, have refused to comment on any speculation regarding its sale.
The views expressed in this post are those of the author and are not necessarily those of Qube Global Software. All facts are verified where possible directly by the author.
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