Lum Chang on Monday said it has signed a deal with UKI (Wembley) Limited to buy Kelaty House, a freehold commercial property in Wembley, northwest London, for 25.5 million pounds (S$55.6 million).
The property is located within the Wembley Regeneration Area near the iconic Wembley Stadium in an area that is rapidly transforming into a vibrant and dynamic neighbourhood, the Singapore construction group cum property developer said.
The property is about 1.03 hectares and is currently fully leased. It has existing planning consent from the authorities to be redeveloped into a mixed-use development. Lum Chang is now reviewing its options and will make a decision on what to do with the building in due course.
Lum Chang said the acquisition presents a "prime investment opportunity" to expand the group's property portfolio in the UK, and the building is expected to provide a rental income stream to the group in the short term.
The consideration is to be initially funded by the group's internal cash resources, but the group may explore external debt financing in the future, it said.
The acquisition is expected to be completed by about August 28, 2015.