Singapore's Ho Bee Land buys London Grade A office tower for $1.16b

The property, Ropemaker Place, is 21 stories high and 602,000 sqft large.

Ho Bee Land’s subsidiary Grandeur Property Investments acquired AXA-managed Frasia Properties S.à.r.l (FPS) for $1.16b (£650m). FPS is registered in Luxembourg and owns a freehold property known as Ropemaker Place, 25 Ropemaker Street, London EC2.

According to an announcement, Ropemaker Place occupies a substantial freehold island site of about 1.37 acres in the City of London. The 21-storey Grade A office tower with three basements was developed by British Land. Completed in May 2009, it comprises a rentable area of about 602,000 sqft.

The locality of Ropemaker Place is touted to be one of the top growth areas in London, Ho Bee Land said. “Ropemaker Place, being strategically located, aims to tap on these features which will enhance both the desirability and value of the offices around the Crossrail stations. Ropemaker Place is currently multi-let to good S&P credit rated tenants with a weighted average lease term of 10.5 years to expiry and 8.5 years to break option,” it added.

The property’s annual rental income is about $55m (£30.57m). “The combination of long weighted average income lease term and strong covenants of the tenants will provide us with a steady and secure income stream. Moreover, it will help us to weather the Brexit uncertainty over the next 2-3 years,” the company said.

Ho Bee Land chairman and CEO Chua Thian Poh said, “With the acquisition of Ropemaker Place, our total investment in London has risen to $2.4b. This constitutes 41% of the group’s total investment portfolio. The acquisition allows the Group to substantially grow its robust and sustainable recurrent income base.”