GIC rumoured to be buying 50% stake in Broadgate London office complex


GIC  is set to buy a 50% stake in the Broadgate in what would be one of the country’s biggest property deals for decades according to a number of reports.

The Times has suggested the Singapore sovereign-wealth fund is ready to spend a staggering £1.7bn to acquire a half stake in the massive London office complex from Blackstone: although, at present, the deal is in its very early stages according to The Times’ report.

Broadgate is a collection of 16 London office buildings, restaurants, pubs, health clubs and shops based on 30 acres. An estimated 30,000 people work on the site, home to Swiss bank UBS amongst other financial giants. The London office complex is 96% occupied.

Blackstone, a private equity group based in New York, initially bought the stake using £77m worth of equity from British Land in 2009. At the time, the entire property was valued at around £2.1bn.

If a deal is struck, Blackstone is set to make almost £1.6bn profit on the asset.

British Land still owns the other 50% stake in the Broadgate development.

GIC is one of the world’s largest sovereign-wealth funds. It currently has other UK investments in the form of a stake in the Bluewater shopping centre in Kent and also some student housing in London.

Currently, neither GIC, British Land nor Blackstone have commented on the prospective deal.

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