SEA Holdings, a Hong Kong-listed international property firm, has acquired a City of London office building that is leased to the Bank of Scotland for a further 22 years.
The property at 33 Old Broad Street, EC2, traded for £258 mln (€281 mln), reflecting a yield of 3.46%.
The nine-storey building comprises 191,000 square feet (17,744 m2) of office space and is let to Bank of Scotland until March 2039, one of the longest occupational leases in the City of London. The passing rent equates to more than £47,50 per square foot.
33 Old Broad Street was developed by UK property company Helical Bar and completed in 1997. Within 150 metres of the new Liverpool Street Crossrail station, the office building is also located close to Tower 42, The Gherkin, the Leadenhall Building and the Heron Tower.
The vendor was Evans Randall, a London-based private equity business active in European real estate since 2004.
Evans Randall and its co-investors acquired 33 Old Broad Street in mid-2006. In a statement on the sale to SEA Holdings, Evans Randall said the building offered a major future redevelopment opportunity to provide a landmark tower, subject to attaining the necessary planning consents.
Kent Gardner, CEO at Evans Randall, said: 'The sale of 33 Old Broad Street is evidence of the continued strength of the core City of London office market, and reflects the insight and experience the Evans Randall Investors team brought to initial stock selection and ongoing management. We are pleased to have found a natural, long-term owner for this prime City asset, with long-term security of income, good reversionary potential and an almost unrivalled redevelopment opportunity.'
CBRE and Paul Hastings advised Evans Randall.
Hong Kong
The transaction is the latest in a series of major investments by Hong Kong companies in the centre London office market. 33 Old Broad Street is also the second office asset owned by SEA Holdings in the City of London. Asian Growth Properties, one of the group's subsidiaries, acquired 20 Moorgate, a City of London office let to the Bank of England, for £155 mln in November 2016.
