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Ho Bee Land Limited, via its wholly owned unit Stream Field Investment Limited, acquired a Grade A office building in London for £129.3 million (around S$228 million).
This comes after Stream Field Investment Limited successfully completed its acquisition of Emmatown Properties Ltd, which is the owner of the freehold office building located at 67 Lombard Street, London EC3V 9LJ.
Situated within the core of City of London, the property is about 100 metres away from the Royal Exchange and the Bank of England.
Occupying a virtual island site of 0.32 acres, the property – which was redeveloped in 2014 – offers “93,640 sq ft of Grade A office space, restaurant and ancillary accommodation arranged over basement, lower ground, ground, and eight upper floors,” said Ho Bee Land in an SGX filing.
It noted that the building has “very high quality specifications and modern facilities which include the provision of 78 bike spaces and changing room facilities on the lower ground floor”.
The Grade A office building is fully let to six tenants, with over 50 percent let by income to Fortune 500 company Arthur J. Gallagher. The property has a weighted average unexpired lease term of 10.2 years to expiry, while its current total annual rent income stands at around £5.294 million (about S$9.3 million).
With this, Ho Bee Land revealed that the acquisition price reflects a net yield of around 4.1 percent.
Ho Bee Land chairman and CEO Chua Thian Poh noted that the acquisition brings the group’s asset portfolio in London to six commercial buildings.
“The average leases of our London portfolio are more than five years and this will enable us to ride through the uncertainties from the Brexit negotiations over the next two to three years. In the longer term, we believe London will continue to thrive as a global financial city,” he added.
This article was edited by Denise Djong.
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