Singapore developer, Hoi Hup Realty has made its maiden overseas real estate acquisition – the purchase of a commercial building in City of London for GBP 77 million.
The building, which has approximately 106,892 sq ft of Grade A office accommodation, is located at 1 Golden Lane, City of London. Currently, the property is single let to a leading global investment bank, UBS AG, with an 11-year lease.
Mr Terence Tang Managing Director, Capital Markets and Investment Services Asia, at Colliers International said, “London is currently one of the hot destinations for Asian investors looking to diversify their portfolio and expand their global reach. Investors are increasingly viewing assets, like 1 Golden Lane, as bond-like investment instruments, as they generate attractive net yields of around 5-6 per cent over a long tenancy period.”
He continued, “We are delighted to represent Hoi Hup Realty and congratulate the company on its first significant property investment overseas. This deal is a significant win for Colliers. It clearly demonstrates the value of our integrated global capital markets platform. Our Singapore and London Colliers teams have closely worked together to advise and identify the property in accordance to the client’s investment criteria, and successfully structured and negotiated this investment deal.”
Golden Lane is strategically located at the gateway of Farringdon, London’s Tech City cluster and the City of London. The asset will provide Hoi Hup Realty with a stable income with a strong investment-grade covenant. Subject to approval from the relevant authorities, there may also be a possibility to convert the building from commercial use to other usage, such as residential, if the new owners intend to explore.
