Singapore’s Ho Bee Land Acquires Freehold Grade a London Property with £650m Investment
Singapore-based Ho Bee Land has announced it is acquiring a property in London. In doing so, they will have the opportunity to increase their holdings by a whopping fifty percent in this European financial capital. The building in question is known as Ropemaker Place. It is a twenty-one story office building that now stands as Ho Bee Land’s most expensive London-based purchase to date.
Obviously, the company has a number of plans for the building. The sizable investment brings their current investments in London properties to approximately 1.7 billion dollars U.S. From this acquisition, one can imagine a number of possibilities unfolding, over the course of the coming months and years.
Ho Bee Land Buys Ropemaker Place
Moving forward from the purchase agreement signed on June 15th, it is important to understand exactly what Ho Bee Land purchased. Ropemaker Place is a 2009 vintage structure that can be found in the EC2 District. This puts the building in the heart of London’s thriving financial district. The rentable area for the building is around 602, 000 square feet. This can be broken down into more than 500, 000 square feet of office space, and roughly thirty thousand square feet for retail purposes.
Ho Bee Land is purchasing this building from Frasia Properties Sàrl. The location of the building itself was a key reason for Ho Bee Land’s interest in the first place. Remember that the Crossrail is going to be completed and opened by the end of this year. Ropemaker Place is also just 200 metres away from the Moorgate Station. It is also just 400 metres away from the Liverpool Street Station, which is widely considered to be the busiest and most importation transportation hub in the city of London.
There are additional reasons for the purchase that are worth keeping in mind.
What’s next for Ho Bee Land and Ropemaker Place
The strong covenants of the tenants are being seen as one of the main reasons why the purchase is ultimately going to work out for Ho Bee Land. The purchase is also believed to be a measure against the concerns over the consequences of Brexit, which are expected to continue appearing over the next few years.
Ho Bee Land is nonetheless confident that they have made the right decision. They continue to see London as one of the most powerful financial cities in the world. Certainly, they are perhaps second, if not superior to, the financial institutions of New York. Despite elements like Brexit in play, London continues to remain a powerhouse on a number of levels. Considering the amount of money Ho Bee Land has put into this endeavor, it stands to reason that they have long-term plans in London.
The next question will be to see what Ho Bee Land will do with the building. There likely won’t be any surprises on that front. The weighted average lease term with the building is around 10.5 years. Among the current tenants in the building are The Bank of Tokyo-Mitsubishi, IHS Markit, and MUFG Securities.
About the Author
Morris Edwards is a content writer at CompanyRegistrationinSingapore.com.sg, he writes different topics like Things to Consider Before Making a Property Investment in Singapore, Singapore becomes the largest foreign investor in Australian property and all topics related to Business and Finance.
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