Hong Kong-based Link Reit, Asia’s largest real estate investment trust, has announced a £380million pound deal for The Cabot. The offices house Morgan Stanley’s London HQ in Canary Wharf.
It’s Link Resit’s first entry into the European market (at a 0.4% discount). The deal is viewed as a vote of confidence in the commercial space sector at a time when some companies are looking to offload office space.
It is the largest deal in London this year and, according to Martin Lay, Head of City Investment at Cushman & Wakefield, “represents the green shoots of activity we are seeing the office market following the Covid-19 lockdown”. He called it a “landmark deal”.
Link’s chief executive George Hongchoy said the acquisition would allow the investment trust to diversify and improve its portfolio.
He said, “Today’s acquisition is part of our Vision 2025 growth strategy – a diversified portfolio can strengthen our portfolio resilience, allowing us to benefit from the varied economic cycles of different markets.”
The 17-storey 25 Cabot Square property is a rare freehold multi-let Wharf office at more than 44,000 square metres and was recently refurbished.
It is being acquired with an annual net passing rent of £18million. It is 99.1% occupied by Morgan Stanley, a non-ministerial government department, a statutory body and a co-working space operator.
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