SINARMAS Land : A26 0% is selling a wholly-owned subsidiary that owns a freehold commercial property in London for an estimated price of £247.5 million (S$414.2 million).

The property company stated in its statement filed to the Singapore Exchange on Wednesday (Jul 13) that its wholly-owned subsidiary SML Victoria has entered into a sale and purchase agreement with LTH Property Holdings 3 for the divestment of Horseferry Property.

Horseferry Property owns the freehold commercial property at 33 Horseferry Road in London.

The £247.5 million price was determined on a willing buyer willing seller basis, taking into account factors including recent transaction prices of similar properties in the same location, Sinarmas Land stated.

A cash deposit of 20 per cent of the sale price was received upon signing the agreement, with the balance payable on completion, which is expected to take place in early August.

The proposed disposal provides an opportunity for Sinarmas Land to realise an “attractive” rate of return on its investment, the property company noted, without elaborating on the return rate. However, the company acquired the building in 2017 for £188.6 million, according to an earlier Business Times report.

GET BT IN YOUR INBOX DAILY

Start and end each day with the latest news stories and analyses delivered straight to your inbox.

Sign UpVIEW ALL

Sinarmas Land closed flat at S$0.195 on Wednesday, before this proposed divestment was announced.