Ho Bee Land continued its diversification into the United Kingdom by purchasing an office building that once served as London’s General Post Office.
The Singapore developer will pay ￡171 million (S$362 million) for the freehold property known as 1 St Martin’s Le Grand, it said in a statement on Friday.
“The acquisition of 1 St Martin’s Le Grand is our second major office acquisition in the city of London, and shows our confidence in the London office market which is strengthening rapidly in tandem with the improving UK economy,” Ho Bee chairman and CEO Chua Thian Poh said in a statement.
“The acquisition is part and parcel of the group’s continuing diversification overseas in times when the local market is facing very strong headwinds with limited investment opportunities,” he added.
St Martin’s Le Grand was originally constructed in the late 19th century. The building was redeveloped in the late 1980s.
The building has 276,792 sq ft of Grade A office space spread over basement, ground and nine upper floors.
Based on Ho Bee’s acquisition price, St Martin’s Le Grand will provide a nett yield of 5.5 per cent with total annual rentals of more than ￡9.9 million.
Source : Channel NewsAsia – 7 Mar 2014
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