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UOL to buy London property through joint-venture firm for £229.6 million
UOL Group Limited on Friday said it has, through its newly incorporated associated company, United Venture Investments (HI) Pte Ltd, entered into an agreement with Holborn Management Limited and 120 Holborn Propco Limited to acquire Holborn Island for £229.6 million (S$406.2 million), subject to usual post-completion adjustments.
United Venture is a 50:50 joint-venture company incorporated in Singapore by UOL Venture Investments, the company's wholly-owned subsidiary, and UIC Overseas Investments, a subsidiary of United Industrial Corporation Limited (UIC).
The freehold nine-storey mixed-use property is located in Farringdon, London, and is within walking distance to two tube stations - 100 metres to Chancery Lane Tube Station and 300 metres to Farringdon Tube Station interchange and upcoming Cross Rail.
A deposit of £22.96 million was paid on signing of the agreement. The remaining amount is payable on completion, which is scheduled for Nov 10, 2016.
UOL said in a filing to the Singapore Exchange (SGX) that the acquisition would be financed by internal resources and external borrowings, and is not expected to have a material impact on its net tangible assets or earnings per share for the financial year ending Dec 31, 2016.