Chinachem Group, a construction holding from Hong Kong, paid £158.5 million ($182 million) for the London office building rented by the developer of the popular short-video app.
The modern Kaleidoscope skyscraper in the center of the capital has green & sustainable certifications and a 5,000-square-foot rooftop terrace. In March 2021, TikTok signed a 15-year lease contract on the building. Annual payments are about £7.6 million.
The building was previously owned by Helical, a real estate investment and development firm. This was the first purchase by the Hong Kong holding aimed at diversifying its assets.
Donald Choi, Executive Director and CEO at Chinachem, said they were happy about the successful acquisition of the Kaleidoscope building in a prime location – in one of the most dynamic, buzzing, and culturally intense sectors of the London market with an impressive rent growth performance. Chinachem intends to keep this property as a long-term investment.
At the time of the purchase, London’s relations with China and Hong Kong are somewhat strained after a fast-track residency scheme for British National (Overseas) passport holders wad adopted in response to Beijing’s passing a large-scale national security law concerning the former British colony. 3 million Hong Kong residents and members of their families will be able to relocate to the United Kingdom under this program.
Investors should therefore expect further growth of demand for residential property in London from this ethnic group.
