Lum Chang adds to London holdings with €36m buy

Singapore-listed Lum Chang has expanded its holdings in London with the acquisition of a site in the Wembley Regeneration Area for £25.5 mln (€36 mln).

Kelaty House is a fully leased, freehold commercial property located on 1 hectare at First Way adjacent to Wembley Stadium.

Commenting on the acquisition from Londonewcastle, Lum Chang noted Wembley Regeneration Area is 'rapidly transforming into a vibrant and dynamic neighbourhood'.

The Kelaty House site has existing planning consent for a mixed-use development. Lum Chang is reviewing its options and will make a decision on what to do with the building in 'due course'.

The Singaporean builder-developer-investor financed the deal from its own internal cash resources but may obtain external debt financing in the future. In the meantime it will benefit from an existing rental stream until the building becomes vacant early next year.

The deal marks Lum Chang's third significant investment in the London real estate market. The company entered the market in December 2013 when it acquired 52-57 Prince's Square, home of the Pembridge Palace hotel, near Hyde Park for £26 mln. In May this year Lum Chang purchased 130 Wood Street in the City of London from UK REIT Land Securities for £51 mln.