Ho Bee Land has agreed to acquire a Grade-A office tower called “The Scalpel” at 52 Lime Street in London from Berkley Insurance Co. and Berkley Regional Insurance Co. for GBP718 million, the Singapore company said in a filing to SGX Thursday.
The consideration will be paid in cash, financed by internal funds and bank borrowings, Ho Bee Land said, adding the acquisition will contribute positively to earnings per share for the current financial year.
“The acquisition is in line with the croup’s strategy to diversify overseas and grow its recurrent income base,” the company said.
The Scalpel, completed in 2019, is located at the junction of Lime Street and Leadenhall Street, adjacent to The Lloyd’s of London in the insurance district, the filing said. The building has 36 storeys of office space and three retail units at the ground and basement levels, Ho Bee Land said.
The tenants are mainly from the insurance, financial, legal and technology sectors, and the long tenancies have 10-year passing rent of GBP29 million for a 4 percent yield, Ho Bee Land 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,” Nicholas Chua, CEO of Ho Bee Land, said in the statement.
“We remain confident of London’s long-term economic prospects and attractiveness to global investors,” Chua added.
He said the deal will boost the company’s total investment in London to more than GBP2 billion and strengthens the company’s recurrent income base.