Singapore listed property group Ho Bee Land Limited has had a busy week acquiring two central London commercial properties.
Last week the firm announced that its wholly owned subsidiary, HB Victoria Pte. Ltd. had entered into a sale and purchase agreement with a subsidiary of British Land to acquire a freehold property known as 39 Victoria Street, London SW1 (the “Property”) for £144 million.
The Property is a 10-storey office building, totaling 98,000 square feet including retail space on the ground floor. Developed to an exacting standard by British Land in 2014, the Property offers best-in-class Grade A office accommodation.
The Property sits within Victoria’s established office core - a headquarter destination for a number of major international companies. It also lies in close proximity to The Houses of Parliament, the Palace of Westminster and Parliamentary Estate.
The Property is currently let in its entirety to The Corporate Officer of The House of Commons until September 2029 with a break option in July 2026. The total rent is approximately £6 million per annum, averaging £61.30 per square foot overall, and hence highly reversionary. The rental reviews will be on a five yearly upward basis only. The annual rent reflects a net initial yield of 4.1 percent.
Yesterday the firm said another subsidiary, HB Mayfair, had signed a sale and purchase agreement with Aberdeen Asset Management to acquire 110 Park Street, Mayfair, for £45.8 million. The Singaporean company said it had acquired the property for recurrent income and will hold it as a long-term investment. The initial net yield is about 4.5 per cent based on net purchase price.
The property, which has a remaining leasehold of 106 years, is situated at the northern end of Park Street in Mayfair, one of the most exclusive districts of London's West End. The five-storey building was re-constructed behind its original Victorian facades in 1990-1991.
