A Singaporean investment firm has snapped up the former home of the London Stock Exchange – taking advantage of ‘uncertainties surrounding Brexit’ in doing so.
The Singapore-listed City Developments Limited (CDL) struck a £385 million deal for the property on 125 Old Broad Street, formerly known as the Stock Exchange Tower.
It claimed to have ‘confidence in the long-term fundamentals of London’ and marks the latest transaction in a flurry of investments made by Asian investors in London’s office buildings.
Frank Khoo, group chief investment officer at CDL, said: ‘We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market.
‘The short-term uncertainties surrounding Brexit have presented us opportunities to acquire assets with deep value.’
Cushman & Wakefield, which has its European headquarters in the building, advised on the sale.
Andrew Hawkins, International Partner at Cushman & Wakefield said: ‘We were delighted to be tasked by CDL to find them an off-market core plus asset where they could add value.’
Other tenants of the fully-occupied property include King & Spalding and China International Capital Corporation.
According to the property advisers, demand for central London office space is growing. Space under offer is 27 per cent above the 10-year average.
Asian investors have become major buyers following the drop in the value of the pound in 2016.
Chinese investment group Hengli Investments Holding Group last year signed a 20-year lease on Lloyds Banking Group’s headquarters for an undisclosed sum.
That deal came shortly after Cheung Kei Group forked out £270 million for a Canary Wharf tower which lets to businesses including US banking giant JP Morgan as well as Time Inc, American Express, Balfour Beatty and Cision Gorkana.
The company bought the site, at 5 Churchill Place, from Said holdings.
Hong Kong food conglomerate Lee Kum Kee earlier spent £1.3 billion buying out Canary Wharf Group’s and Land Securities’s 50% stakes in the ‘Walkie Talkie’ skyscraper in June.
London’s landmark ‘Cheese Grater’ building was also sold to the investment vehicle of Chinese property magnate Cheung Chung Kiu for £1.15 billion.