A major Singaporean investment group has snapped up a large stake of a huge London office development in the heart of the capital’s financial district for a reported £1.7bn.
The Government of Singapore Investment Corporation (GIC) has purchased a significant 50% portion of the office development in Broadgate, located in the City of London, from Blackstone.
As part of the deal, GIC will also take over Blackstone’s 50% interest in 5 Broadgate, a new London office development set to be completed in 2015.
GIC Real Estate Regional Head for Europe, Christopher Morrish, said: “Broadgate is an ideal addition to GIC’s value-driven global real estate portfolio. We believe it provides a rare opportunity to invest in a world-class asset.
“The estate will give us an attractive combination of stable long-term income with the potential to create additional value through active management, repositioning of the office buildings and by enhancing the retail and leisure offer. These efforts will retain Broadgate’s attraction to a broad range of international occupiers.”
Broadgate is a business district in the heart of London and features 17 office buildings spanning over 4.7 million sq ft. Over 30,000 people work in the area and a number of major banks including the Royal Bank of Scotland, Credit Agricole and Deutsche Bank are based there.
The new London office being constructed at 5 Broadgate will offer 710,000 sq ft of office space and is pre-let in its entirety to UBS AG.
By: Kirsty MacGregor
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