Walkie-Talkie skyscraper sold for £1.3bn to Hong Kong investor

A Hong Kong investment giant best known for making oyster sauce, on Thursday tucked into the London property market with a record £1.3 billion deal to buy the landmark Walkie Talkie skyscraper.

LKK Health Products Group, part of the Lee Kum Kee Group, has agreed to buy the 20 Fenchurch Street from joint owners Canary Wharf Group and LandSec, in what experts said is the UK’s biggest ever deal for a single office building.

Located in the heart of the capital’s insurance district, the 671,000 square foot office block is home to businesses such as RSA and Liberty Mutual. It also features the three-storey Sky Garden with a restaurant, bar and views across the capital.

The Walkie-Talkie was completed in 2014, and has not been without its controversies: a year earlier blinding rays of light from it were being blamed for melting parts of vehicles below the building.

James Beckham, of agent Cushman & Wakefield which advised on the deal, said the building will bring in rent of £45 million per year for its new owner.

He told the Standard: “Even with the headwinds of Brexit, our client is committed to the long term future of London and is confident of further rental growth. Crossrail is only to going to help.”

It is understood LKK also made an attempt to buy the Gherkin earlier this year, but no deal was agreed.

LKK is the latest in a string of Asian investors ploughing cash into the London property market since Britain’s vote to leave the EU weakened sterling. In February Hong Kong-based CC Land agreed to buy the Cheesegrater tower for £1.15 billion.

LandSec said it would return £475 million to shareholders through a special dividend and share consolidation.

Chief executive Rob Noel said: “Our decision to sell 20 Fenchurch Street at an exceptional price and return cash to shareholders reflects our disciplined approach to the use of capital.”

CBRE and Easdil advised LandSec and Canary Wharf Group.