Cheesegrater

Three banks close one of the UK's largest real estate financing deals



Bank of China (Hong Kong), HSBC and ING have closed one of the UK’s largest real estate financing deals after securing the acquisition of the Leadenhall Building.

Often known as the ‘Cheesegrater’, the 46-storey London landmark was purchased earlier this year by CC Land Holdings Limited.

The three banks acted as joint mandated lead arranger, joint bookrunner, joint coordinator and joint hedge coordinator for the asset which was purchased for £1.15bn.

It was the largest acquisition of a single building in the UK since December 2014, when the HSBC Tower in Canary Wharf was acquired for £1.174bn.

Dickie Wong, deputy chairman and executive director at CC Land, said it was pleased to be working with all three banks in the transaction. 

“This strengthens our confidence in the long-term London property market and we will continue to look for potential investment opportunities in this city, especially on those trophy and iconic buildings similar to the Leadenhall Building.”

Mike Shields, head of real estate finance in UK, USA and Asia for ING Bank, added: “We are extremely proud to have been selected to co-lead the financing of such a high-quality sponsor and asset. 

“This transaction demonstrates our expertise in financing landmark office properties and is a perfect mix of our leading UK real estate finance franchise and ING's extensive network in Asia."

The Leadenhall Building was previously owned by British Land and Oxford Properties and talks over a sale began earlier this year.

Andy Armstrong, global co-head of corporate real estate at HSBC, added that it was one of the most significant real estate financing deals to be agreed in London in recent years.

“The success of the deal further strengthens our expertise and experience in this area, while utilising our extensive network as the world’s leading international bank.”   

Phoebe Tse, general manager for the commercial banking department at Bank of China (Hong Kong), added: “We are very proud to co-lead such an important transaction for CC Land Holdings Limited. 

“Leveraging Bank of China Group’s solid foundation, strong capital position and profound overseas experience, BOCHK demonstrates its unique capabilities of supporting financing projects globally.”


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