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Ho Bee buys office property in West End London for £45.8m
HO BEE Land Limited has inked a second prime office acquisition in West End London within a week, with wholly owned subsidiary HB Mayfair entering a sale and purchase agreement with Aberdeen Asset Management to acquire the office known as 110 Park Street, Mayfair, for £45.8 million (S$98 million).
After accounting for rental guarantee and rent top-ups, the net consideration is about £44.6 million. The property is acquired for recurrent income and will be held as a long term investment, Ho Bee said.
The property, located in one of the most exclusive districts of London's West End, is a five-storey building which provides about 28,000 sq ft of Grade A office accommodation. The building was re-constructed behind its original Victorian facades in 1990-1991.
It is held leasehold from Grosvenor West End Properties for a term of 125 years expiring in June 2121 (balance term of 106 years), and is multi-let with a weighted average unexpired lease term of 8.68 years to lease expiry and 5.4 years to tenant break options.
The total gross annual passing rent is at £2.1 million per annum, translating into an average rent of £77.77 per sq ft. The initial net yield is about 4.5 per cent based on net purchase price.
Just last week, Ho Bee announced that it had acquired a freehold office building at 39 Victoria Street in London for £144 million from UK firm British Land.