Ho Bee Land has made its third major office acquisition this year and its sixth office building in London.
The property group announced direct wholly owned subsidiary, Kempster Investments has entered into a sale and purchase agreement with Lunar House to acquire a freehold property known as Apollo House and Lunar House at Wellesley Road, Croydon, London.
The gross purchase consideration for the property is £99 million ($210 million) which was arrived at on a willing-seller and willing-buyer basis and will be financed by internal funds and bank borrowings.
The property comprises two office buildings of 20 storeys and 22 storeys, providing total 441,797sf of office accommodation.
The buildings were constructed in the late 1960s and underwent a phased refurbishment programme in 1995 and 2000.
The property is currently let in its entirety to the British Government in two separate leases until 23 June 2023. The total rent is £5.521 million per annum or £12.50 psf.
There is a five yearly upward only rent review in December 2015 and December 2020.
The annual rent translates into a net initial yield of 5.35% after allowing for transaction costs.
Chua Thian Poh, Chairman and Chief Executive Officer of Ho Bee Land, says: “This acquisition is unique as it offers us recurrent income till 2023. In the interim, it allows us ample time to plan and maximise the development potential of the site.”
Ho Bee Land last traded at $2.00.
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The property group announced direct wholly owned subsidiary, Kempster Investments has entered into a sale and purchase agreement with Lunar House to acquire a freehold property known as Apollo House and Lunar House at Wellesley Road, Croydon, London.
The gross purchase consideration for the property is £99 million ($210 million) which was arrived at on a willing-seller and willing-buyer basis and will be financed by internal funds and bank borrowings.
The property comprises two office buildings of 20 storeys and 22 storeys, providing total 441,797sf of office accommodation.
The buildings were constructed in the late 1960s and underwent a phased refurbishment programme in 1995 and 2000.
The property is currently let in its entirety to the British Government in two separate leases until 23 June 2023. The total rent is £5.521 million per annum or £12.50 psf.
There is a five yearly upward only rent review in December 2015 and December 2020.
The annual rent translates into a net initial yield of 5.35% after allowing for transaction costs.
Chua Thian Poh, Chairman and Chief Executive Officer of Ho Bee Land, says: “This acquisition is unique as it offers us recurrent income till 2023. In the interim, it allows us ample time to plan and maximise the development potential of the site.”
Ho Bee Land last traded at $2.00.
Click Here To Register For Free Trial Services OR Give A Missed Call : +6531581402 Follow Us On Twitter : www.twitter.com/epicresearchsg Like Us On Facebook : www.facebook.com/EpicResearchSingapore Need Any Assistance Feel Free To Mail Us at : info@epicresearch.sg
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