UK’s largest real estate financing deal completed

PETALING JAYA (June 8): Bank of China (Hong Kong), HSBC and ING have closed one of the UK’s largest real estate financing deals by securing the finance for the acquisition of The Leadenhall Building, otherwise known as the “Cheesegrater”, a 46-storey landmark prime iconic real estate in London.

The three banks acted as Joint Mandated Lead Arranger, Joint Bookrunner, Joint Coordinator and Joint Hedge Coordinator by providing financing for the asset that was bought earlier this year for £1.15 billion (RM6.35 billion) by C C Land Holdings Ltd, a Hong Kong-listed real estate company.

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 £1.174 billion, and demonstrates the continued global investor interest in London’s strong real estate market.

C C Land deputy chairman and executive director Dickie Wong said in a statement today that the company is very pleased in working with ING, HSBC and Bank of China (Hong Kong), among many willing banks and financial institutions, for the transaction of The Leadenhall Building.

“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,” he said.

ING Bank head of real estate finance UK, USA & Asia Mike Shields commented: “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.”

Andy Armstrong, global co-head of corporate real estate HSBC, noted that this is one of the most significant real estate financing deals in London in recent years, and the bank is very proud to be a key part of it.

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

Bank of China (Hong Kong) commercial banking department general manager Phoebe Tse said: “We are very proud to co-lead such an important transaction for C C Land Holdings Ltd. 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.”