Guo Guangchang, dubbed as the "Chinese Warren Buffett," founded Chinese investment conglomerate Fosun International Ltd. (Photo : Reuters)
Guo Guangchang, dubbed as the "Chinese Warren Buffett" and founder of Chinese investment conglomerate Fosun International Ltd., is hastening the overseas expansion of Fosun by acquiring the Thomas More Square complex in London for around 300 million pounds ($426.4 million), China Daily reported.
Built in 1990, the complex is located on the edge of the City of London, and adjacent to the London City Airport and the St. Katherine Docks in Wapping on the north of the River Thames. Since 2014, most of the tenants of the complex have been Rupert Murdoch's News Corp. businesses.
The Thomas More Square complex has an estimated market value of 100 million pounds to 200 million pounds, and an annual net rent of around 9.7 million pounds, according to Land Securities Group Plc., the largest commercial property company in the United Kingdom, which currently holds 100 percent of the complex.
The report said that Land Securities refused to give details about the acquisition, while Fosun told China Daily on Wednesday, March 23, that the company is set to make an official announcement. However, no announcement were made until the market closed that day.
The acquisition, once finalized, is set to become Fosun's biggest real estate deal in Europe, the report said, as the company had already acquired London's Lloyds Chambers in 2013 and Milan's historic Palazzo Broggi last year.
The company had set up a joint venture called Resolution Property Investment Management with European investment firm Resolution Property last year. The company would act as Fosun's exclusive investment manager to buy interests in real estate assets across Europe.
Chinese companies interested in buying overseas properties, Europe is one of the best choices, Justin Taylor, head of EMEA retail at property service provider Cushman & Wakefield, said, adding that further improvements in the retail market, especially busy commercial areas in some parts of Europe, are expected to occur in the coming years.
"Indeed, a strong retail sales growth forecast, robust occupier demand and a lack of supply in many locations mean rents will keep rising in the most popular high streets," Taylor said.
