Hong Kong's Chinese Estates Aims to Purchase Two Goldman Offices in London

Chinese Estates Holdings Ltd. (127), a property company controlled by Hong Kong billionaire Joseph Lau, wants to buy two buildings in the City of London occupied by Goldman Sachs Group Inc. (GS)

Chinese Estates aims to add Peterborough Court and Daniel House after purchasing River Court, a Goldman building on the same street, in January. The two properties were put up for sale last month for at least 300 million pounds ($488 million), according to Jones Lang LaSalle Inc., which is marketing them. They are part of Goldman’s European headquarters.

“Chinese Estates is very interested in buying the Goldman Sachs buildings in London,” Alison Yeung, a spokeswoman for Chinese Estates in Hong Kong, said yesterday by telephone.

London was one of the first real estate markets to see a pickup in deals and prices after the financial crisis. Sales of existing commercial property in the U.K. capital generated more money than any other city last year, according to Real Capital Analytics Inc.

The Goldman buildings are the kind of assets that attract “strong interest from overseas investors who view London as their preferred investment location and a safe haven during this period of global economic uncertainty,” said Stephen Down, managing partner of Gresham Down Capital Partners.

Gresham Down, a London-based property broker, handled the 280 million-pound sale of River Court. Knight Frank LLP advised Chinese Estates.

Peterborough Court and Daniel House have total space of 370,526 square feet (34,500 square meters). The buildings on Fleet Street in central London were put on the market after the former owner, Canadian developer Jesta Group, defaulted on debt repayments, Jones Lang said.

Goldman has two other office buildings in London, both of which are in the city’s main financial district.

To contact the reporter on this story: Tom Bill in London at tbill2@bloomberg.net.

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net.

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