Chinese Group in Talks to Buy London Development

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Private equity giant Blackstone Group is set to sell a 33-acre office development in west London to China Investment Corp. for about 800 million pounds ($1.3 billion), according to news reports.

The deal is currently under negotiation, with an agreement expected by the end of November, the Financial Times reports.

The deal would mark the second U.K. purchase for CIC, the sovereign-wealth fund. Last year the fund purchased Deutsche Bank's London headquarters for £245 million, the FT reports. 

Chiswick Park was designed by Rogers Stirk Harbour + Partners. The site features 140,000 square metres of office space spread across 12 buildings, which are leased to such companies as PepsiCo Inc., Tullow Oil Plc and Walt Disney Co. 

Blackstone purchased Chiswick Park in 2011 for £480 million and has developed an office building and started construction on a second one since then. The group reportedly tried to sell the property last year, but didn't find a buyer.  

The deal would be the latest example of Asian capital entering London. Earlier this month, Singapore-based Oxley Holdings Limited purchased the Royal Wharf development site, with plans to develop a "new district" for London. 

Blackstone is known for a strategy of buying properties, adding value and then selling properties a few years later, rather than holding property for the long term. The firm has been making large deals around the world, including a move to securitize its $7 billion portfolio of single family homes in the U.S.

Last week Blackstone announced it was purchasing a 40 percent stake in Chinese mall developer and operator SCP Company Ltd.