British Land and Singaporean sovereign wealth fund GIC have dropped plans to buy 1 Kingdom Street, Vodafone's headquarters in Paddington, London, for around £275 million or a yield of just more than 7%, CoStar News understands.
Hong Kong investor CC Land appointed Savills to sell the building last year seeking up to £300 million. It emerged at the beginning of 2025 that BL and GIC, already a major joint venture owner in Paddington, had entered negotiations for the acquisition.
CC Land Holdings bought the building in 2017 for £292 million, or a net initial yield of 4.85%. The vendor was the Cityhold Office Partnership, a Joint venture between TIAA and the Swedish national pension system's AP1 and AP2 funds, that is managed by TH Real Estate.
The 265,000-square-foot building is multilet to Vodafone, which occupies around 93,000 square feet, Equinor and Boldyn Networks, with some vacancy.
The acquisition would have strengthened BL and GIC's ownership in Paddington and BL's investment in campuses. In 2013, British Land bought Paddington Central and carried out a major asset management and development programme across the campus. In 2022 it sold a 75% interest in the majority of its Paddington Central assets to GIC for £694 million.