Ho Bee Land acquires London Grade A commercial building for £129.3m

A UNIT of Singapore-listed property group Ho Bee Land Limited has acquired a central London office building for £129.3 million (about S$228 million), it said in a Tuesday release.

The unit, Stream Field Investments Limited, bought over Emmatown Properties Ltd, which in turn owns the office building, situated at 67 Lombard Street, London EC3V 9LJ.

The property is located in the core of City of London. It is about 100 metres away from the Bank of England and the Royal Exchange.

The property is a Grade A office building redeveloped in 2014. Occupying a virtual island site of 0.13 hectare, the property provides 93,640 square feet of Grade A office space, restaurant and ancillary accommodation arranged over basement, lower ground, ground, and eight upper floors. The building also has modern facilities which include the provision of 78 bike spaces and changing room facilities on the lower ground floor.

The property is fully let to six tenants and over 50 per cent let by income to Arthur J Gallagher, a Fortune 500 company. It has a weighted average unexpired lease term of 10.2 years to expiry. The current total annual rental income is about £5.294 million. The acquisition price reflects a net yield of about 4.1 per cent.

Ho Bee Land's counter was higher by one Singapore cent, or 0.42 per cent, to close on Tuesday at S$2.410 before the announcement.