Singaporean firm puts London asset on the market for €128m

Singaporean investor Ho Bee Land has put a government office building on London's south bank up for sale with a price tag of £98 mln (€128 mln), or a net initial yield of 4.35%.

The company has hired agents at Savills to sell Rose Court, three years after buying the building for around £67 mln from Scottish Widows Investment Partnership.

Rose Court totals 157,144 sq ft (14,599 m2) of office and ancillary accommodation over lower ground, ground and nine upper floors. Let to the Secretary of State for Communities and Local Government on a lease expiring in September 2018, the property currently generates a passing rent of £4.34 mln a year.

'With the current annual passing rent reflecting only £27.65 per sq ft, this is a highly reversionary opportunity for investors to take advantage of the building’s position in one of London’s most supply constrained markets. Further still, the option to fully refurbish or redevelop the offices at the expiry of the current lease could include the addition of two floors for office or residential use, subject to planning. We therefore anticipate a wealth of interest from a wide variety of buyers,' said Savills associate director Ed Nicholson.

Ho Bee Land has snapped up a number of buildings in the capital to diversify its portfolio and reduce its exposure to volatile markets in Asia.

Over the last year it has bought 39 Victoria Street for £144m from British Land, and Shard developer Irvine Sellar’s headquarters at 110 Park Street in Mayfair, acquired for £46 mln from Aberdeen Asset Management.