London’s Costly Office Refurbs Push Chinese Owners Towards Exit

Gingko Tree Investment, which is backed by the government of China, is considering pulling out of a prime piece of commercial real estate in London to avoid having to spend money on a costly refurbishment, according to people familiar with the matter.
The property — 33 Holborn, which is the former headquarters of British grocer J Sainsbury Plc — needs an upgrade in part to comply with stricter energy efficiency requirements. The consortium of investors that owns the property has already secured planning permission to start work. But Gingko Tree, which owns the building with Tishman Speyer and a Danish pension fund, is weighing an exit in order to avoid forking out the necessary capital, the people said, asking for anonymity discussing confidential information.