HK-listed Firm Starts Redevelopment Of London Commercial Property
UNITED KINGDOM – Chinese Estates Holdings revealed that it has commenced the revitalization and redevelopment of its flagship project in London’s central business district (CBD), according to a press release published on Monday afternoon (22 August, SGT).
Situated in 120 Fleet Street, the development comprises the River Court commercial block and the historic Daily Express Building. Hong Kong-listed Chinese Estates shared that it plans to invest about £429 million in the redevelopment, making it the biggest Asian-owned commercial project greenlighted by the City of London over the past few years, based on market data.
While the Daily Express Building will be revitalized and transformed into a high-end art and cultural hub, River Court will be torn down to make way for a 21-storey commercial property with 18,600 sq of retail premises and 540,800 sq ft of office space.
The new building will be renamed as Evergo Tower in celebration of Chinese Estates Holdings merger with Evergo Holdings Company.
Demolition works at River Court officially began on 18 August 2022 and is expected to be finished in Q2 2023. The new building is scheduled to be opened in H1 2026.
Aside from that, Chinese Estates Holdings has appointed reputable global leasing agents to market the commercial premises, particularly office space, in Evergo Tower. Target tenants consist of major financial institutions and other top-tier companies.
Yearly office rent is expected to be about £80 psf to £100 psf, which is equivalent to 1.78 to 2.22 times of the office rent there before the redevelopment. In turn, Evergo Tower is expected to generate a rental income of about £44 million to £55 million per year, which represents an increase of 2.51 to 3.14 times prior to the redevelopment.