Singapore-listed City Developments Limited (CDL) has inked the off-market acquisition of 125 Old Broad Street, formerly known as the Stock Exchange Tower in London, for £385 mln (€434 mln).
The purchase from the Blackstone Group represents one the largest single asset sales in the City of London this year.
The property occupies a rare large freehold island site of 0.70 acres, in the heart of the City of London, directly overlooking the Bank of England. Once the home of the London Stock Exchange, following a significant redevelopment in 2008, the building now comprises 329,200 sq ft of office retail and ancillary accommodation arranged over three basement levels, ground floor, mezzanine and 26 upper tower floors.
The asset is fully let to 21 occupiers including Cushman & Wakefield, King & Spalding and China International Capital Corporation.
Frank Khoo, CDL's Group Chief Investment Officer, said: 'We believe 125 Old Broad Street provides a complementary addition to our London portfolio, both from a geographic perspective and from a tenant mix perspective.'
Khoo added: 'In line with our strategy to grow our recurring income significantly over the next 10 years, this is our second London commercial property acquisition in 2018. 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.'
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.'
Cushman & Wakefield, CMS and KPMG advised City Developments. BH2 and BCLP advised Blackstone Group.