Ho Bee Land Limited has exchanged contracts for the acquisition of The Scalpel, the Grade A office tower at 52 Lime Street in London.
Ho Bee Land will acquire all the ordinary shares of the Jersey SPV, the owner of the freehold interest of the property for £718 million. A deposit of £35.9 million has been paid on 23 February 2022, with the balance payable upon completion on 7 March 2022.
The building is multi-let to tenants from the insurance, financial, legal and technology sectors. The long tenancies of the leases offer secure 10-year passing rent of £29 million translating to an attractive yield of 4%.
Mr. Nicholas Chua, CEO of HBL, commented: “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.”
“With this acquisition, our total investment in London would increase to more than £2 billion. The Scalpel’s 10-year secure long-term income would further strengthen the Group’s recurrent income base.”