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Singapore developr Hoi Hup Realty acquired a commercial building (pictured) in London for GBP 77 million (S$ 163.7 million), Colliers International said in a press release on Monday (27 July).
The property consultancy served as Hoi Hup’s adviser in its maiden overseas real estate acquisition.
Located at 1 Golden Lane in the city of London, the Grade A office building offers 106,892 sq ft of office space and is currently let to global investment bank UBS AG on a 11-year lease.
According to Terrence Tang, Managing Director for Capital Markets and Investment Services in Asia at Colliers, “investors are increasingly viewing assets, like 1 Golden Lane, as bond-like investment instruments, as they generate attractive net yields of around 5-6 per cent over a long tenancy period.”
Colliers added that the property will provide Hoi Hup with a stable income with a strong investment-grade covenant. Furthermore, there may also be a possibility to convert the building from commercial use to other usage, such as residential, subject to approval from relevant authorities.
Nikki De Guzman, Editor at CommercialGuru, wrote this story. To contact her about this or other stories email nikki@propertyguru.com.sg
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