Frasers Property buying London office buildings for £135m

Singapore

A SUBSIDIARY of Frasers Property is acquiring the entire stake in Bedfont Lakes which holds the freehold interest in a business park comprising three office buildings in London.

The aggregate consideration to be paid for the acquisition is about £135 million (S$238 million). This will be payable in cash, and funded from internal resources.

The purchase price is also subject to adjustments, according to terms of the sale and purchase agreement entered into between Bedfont Lakes and Frasers Property Holdings UK.

The business park is located at Bedfont Lakes, Feltham, Middlesex, and has a lettable area of about 272,000 square feet (25,270 square metres). It is leased on a long-term basis as the headquarter campus for multinational tech firm Cisco Systems.

Upon completion of the acquisition, Bedfont Lakes will become an indirect wholly-owned subsidiary of Frasers Property.

In the UK, Frasers Property's commercial portfolio comprises 3.2 million sq ft of business parks in six locations. These include Hillington Park in Glasgow, and five others in England - Winnersh Triangle, Chineham Park, Farnborough Business Park, Watchmoor Business Park, and Maxis in Bracknell.

As at Sept 30, 2019, Frasers Property has total assets of about S$37.6 billion while Frasers Property UK has about £1.1 billion of assets under management.

Shares in Frasers Property closed at S$1.71 on Thursday, down two Singapore cents, or 1.2 per cent.