Resolution sells €400m London office project to Singapore developer

UK-based investor Resolution Property has sold its 240,000 sq ft (22,300 m2) Alphabeta office development in London’s Shoreditch to Singaporean investor Sinarmas Land for £280 mln (€ 402 mln), reflecting an initial yield of 4%.

Alphabeta, which this month reached practical completion, is already 96% let to high quality office tenants from the creative, digital and financial sectors including WPP subsidiary Maxus Global, online restaurant reservation specialist Open Table, digital media PR and marketing agency We Are Social and Mendeley.

Alphabeta, formerly Triton Court, was acquired by Resolution Property’s Resolution Real Estate Fund III in 2012.

'The purchase of Alphabeta will strengthen our portfolio of investment properties in London and further diversify our income streams which are derived principally from Indonesia,' said a spokesperson for Sinarmas Land.

Jacob Loftus, head of UK Investment at Resolution added: 'Alphabeta is a landmark development that has created a new standard for TMT style office space. Located where the worlds of finance and technology meet, the asset will continue to benefit from the continual growth of the Shoreditch market, providing good reversionary potential to the future owners.'

Alphabeta is part of Resolution Property’s UK creative offices portfolio, which also includes: Ampersand in Soho; a recently acquired site in Kensal Road, Notting Hill; Colston Tower in Bristol; and Great Northern in Manchester.

Allsop and GM Real Estate advised on the sale of the investment. CBRE represented the purchaser. Letting agents on Alphabeta are Allsop and Savills. Robert Wolstenholme was consultant to Resolution Property on the disposal.

Earlier this month Resolution Property launched a new investment platform focused on value-add opportunities across Europe in joint venture with Chinese private conglomerate Fosun Property.

The new unit, Resolution Property Investment Management (RPIM), will act as Fosun’s exclusive investment manager for this strategy. It will be majority-owned by Fosun Property, with the balance owned by Resolution Property’s partners.

RPIM is Fosun's first property investment platform in Europe and will also provide a launchpad for Resolution Property’s future real estate investment business, including the launch of Resolution Real Estate Fund V later this year. Fund V will also target third-party investors.