China Life Insurance is in talks to sell its 40 percent stake in the City office tower 99 Bishopsgate to Brookfield Properties. The insurer, which bought the building in 2015, plans to convert its holding into debt. Brookfield, which rebranded as BGRE, currently owns 20 percent and will become the majority owner.
Victor Dahdaleh will own the remaining share. The building was valued at 280 million pounds at the end of last year. Chinese investors have been retreating from the London office market in recent years.
Data shows net buying by Chinese investors reached 10 billion pounds between 2017 and 2020, but they have since divested a net 3 billion pounds worth of assets since January 2021. Higher financing costs and demanding refurbishment requirements have changed the economics of holding some assets. 99 Bishopsgate was built in 1976 and severely damaged by an IRA truck bomb in 1993. It has been renovated and leased space to firms including Latham Watkins and Huawei.
Brookfield secured planning permission last year to demolish and redevelop the tower into a 54-storey skyscraper. Demolition is scheduled to begin next year. China Life will not provide follow-on capital for development if the deal is agreed.
Brookfield declined to comment. China Life and Dahdaleh did not respond to requests for comment.
Source: Financial Times Companies · Summarized by HeadlinesBriefing