Hong Kong-based investor K&K Property Holdings has completed its purchase of two West End properties for £180m.
The firm has bought Endeavour House, WC2, from Aberdeen Standard Investments for £115m, reflecting a net initial yield of 4.8%, and Corinthian House, W1, from Deloitte, acting as administrator for Arcadia, for £65m, representing a net initial yield of 4.25%.
Endeavour House on Shaftesbury Avenue comprises 79,473 sq ft offices and 12,824 sq ft of retail space leased to nine tenants. It provides a rental income of £5.9m for a further 6.5 years.
HBOS occupies the 37,000 sq ft of retail space at the bottom of Corinthian House at 279 Tottenham Court Road, paying £1.75m for a further 12 years. The leases on the upper floors expire in September 2021, providing a refurbishment opportunity.
K&K Property Holdings chief executive Kino Law said: “We aimed to diversify our business scope [and] build up a long-term investment for [our] income-generating portfolio and global business hub.”
K&K Property Holdings entered the UK property market last year with its acquisition of Orion House for £130m from WELPUT.
JLL and Mayer Brown advised K&K on the purchase of Corinthian House; Deloitte was represented by BNP Paribas Real Estate and Teacher Stern.
CBRE and Mayer Brown advised K&K on the acquisition of Endeavour House; JLL and Herbert Smith Freehills acted on behalf of Aberdeen Standard Investments.
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