A Hong Kong investor has made one of the biggest investments in London offices since interest rates rose dramatically last year. Meanwhile, a South Korean investor has made investment in the UK “an immediate priority.”

Chinachem has completed a deal to buy One New Street Square From UK REIT Landsec for £350M. The 275K SF building is leased to Deloitte for the next 14 years at a current annual net rent of £16.8M.

The sale price compares to a September 2022 valuation of £362.8M, about 3% lower, and is significantly lower than the £450M price the building was mooted to be up for sale for in September.

The sale crystallises a total return on capital averaging 10% per annum since Landsec acquired the site in June 2005 and redeveloped it in 2016, the company said.

"While Hong Kong will remain our home and core market, we intend to incrementally increase the group’s exposure in gateway cities of major developed markets, so as to fulfil our business diversification objectives and build a resilient, long-term income stream,” Chinachem CEO and Executive Director Donald Choi said in a statement.

The deal is a fillip for the London office market, where just £365M was invested in the whole of the fourth quarter.

Elsewhere, South Korean real estate fund manager Samsung SRA has awarded a €375M (£329M) mandate to AEW to invest in “repriced” core and core-plus real estate assets. The UK is an “immediate priority,” AEW said, as it is proving to be the quickest to reprice. Germany and Spain are also priorities, followed by France.

The investment strategy is primarily focused on office and logistics, but will also consider build-to-rent and student accommodation, life sciences and other asset classes across Europe.