Sinarmas Land to purchase London office asset for £195m
Michelle Zhu
A SUBSIDIARY of mainboard-listed Sinarmas Land has agreed to purchase a freehold prime commercial building in London for some £195 million (S$334 million) from LS London Holdings One.
Known as 32-50 Strand, the property comprises 139,000 square feet (sq ft) over its basement, ground and 8 upper floors.
It is located at the western end of the Strand which benefits from “excellent connectivity” next to the Charing Cross station and is within a stone’s throw from London’s Trafalgar Square, said Sinarmas Land in a bourse filing on Thursday (May 12).
According to a recent listing by UK commercial real estate site Realla as at May 12, 2 office spaces on the fifth floor of the building have been listed for rent at £62.50 per square foot.
They collectively span 13,635 sq ft, with an 8,125 sq ft space under offer and another 5,500 sq ft space still available for rent.
Sinarmas in its bourse filing said it believes its proposed acquisition will further strengthen the group’s balance sheet with the addition of a prime asset with strong cash flows. This will also augment the group’s investment strategy in central London, added the group.
Acquisition of the property is expected to complete by end-June 2022, and the group intends to use its internal resources and bank borrowings to finance the transaction.
Shares of Sinarmas Land were unchanged at S$0.205 as at 1.11 pm on Thursday, after the announcement was made.
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