CMS advises Landsec on sale of stake in London’s landmark “Walkie Talkie” skyscraper

CMS has acted for longstanding client Landsec on the disposal of its 50% stake in 20 Fenchurch Street, London to LKK Health Products Group Limited (“LKKHPG”), a division of Hong Kong-based Lee Kum Kee Group, for a headline price of £641.3 million. 

20 Fenchurch Street was developed by a joint venture between Landsec and Canary Wharf Group in 2010, completed in 2014 and comprises 671,000 sq ft of office space on 34 floors in the City of London’s insurance district. It is also home to 17,000 sq ft of retail space on the ground floor and within the three-storey Sky Garden.  LKKHPG will also acquire Canary Wharf Group’s 50% stake in the building, bringing the total headline price to £1,282.5 million. This is the UK’s largest ever deal for a single office building. 

The CMS team was led by Funds & Indirect Real Estate Assets partner Victoria Henry, alongside partner Barry Morris (Real Estate), senior associate Tara Walsh and associate William Lawrence (Funds & Indirect Real Estate Assets), and Nick Burt (Tax). Berwin Leighton Paisner advised the joint venture while Mayer Brown advised LKK Health Products Group. 

Commenting on the deal, Victoria Henry said: "This is a landmark deal for the city. We are pleased to have supported Landsec to bring this deal to a successful completion.”