Singapore-listed investor Ho Bee Land is set to up its investment portfolio in London to £2bn, after it closes a £718m all-cash deal to buy the Scalpel, EC3.
The 36-storey office block at 52 Lime Street, owned by insurer WR Berkley, stands at 206.5m in height and comprises around 406,000 sq ft of workspace.
The investor has confirmed it will acquire all of the ordinary shares in the Jersey special purpose vehicle that owns the building. It paid a £35.9m deposit for the offices yesterday (23 February), with the balance payable upon completion on 7 March.
The deal, financed by internal funds and bank borrowings, reflects a 4% yield. The building’s tenants, mainly in the insurance, financial, legal and tech sectors, generate a 10-year passing rent of £29m.
Ho Bee Land said the Scalpel will be held as a long-term investment.
Nicholas Chua, chief executive of HBL, said: “London has proved to be very resilient in spite of Brexit and the pandemic. It has been able to maintain its position as a key global financial hub with a robust office investment market.
“We are very excited to be able to seize this rare opportunity to acquire a landmark office tower which ticks all the boxes for quality, distinction and sustainability. We remain confident of London’s long-term economic prospects and attractiveness to global investors.”
Founded in 1987, Ho Bee Land also has investments and developments in Singapore, Australia, China and Germany.
Its other London properties include: 1 St Martin’s Le Grand, EC1; 60 St Martin’s Lane, WC2; 39 Victoria Street, SW1; 110 Park Street, W1; 67 Lombard Street, EC3; Ropemaker Place, EC2; and Apollo and Lunar House in Croydon.
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