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The City of London’s tallest tower is to be sold to Chinese investors after the joint owners of the “Cheesegrater” building exchanged contracts to sell it to China’s CC Land.

British Land, which developed the tower in a 50-50 joint venture with Canada’s Oxford Properties, said on Wednesday the building would be sold for £1.15bn.

The price for the all-cash deal is 26 per cent above the building’s most recent valuation of £915m last September, defying broader price falls in the market that followed the UK’s vote to leave the EU.

The 736-ft high, wedge-shaped skyscraper, whose formal name is the Leadenhall Building, was completed in 2014.

Tim Roberts, head of offices at British Land, said:

British Land and Oxford Properties took a bold step at the early stages of the UK’s economic recovery to develop The Leadenhall Building to generate a high quality, long term income stream. It’s a decision which has really paid off.

The purchase will be the largest so far by a Chinese investor of a UK property amid a strong flow of funds from China and Hong Kong into UK real estate.

The deal must be approved by the shareholders of CC Land, which is controlled by the western Chinese property magnate Cheung Chung-kiu. He is the sole owner of companies that own more than half of the group’s share capital and has committed to vote in favour of the deal, British Land said.

Copyright The Financial Times Limited 2017. All rights reserved.
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