Singapore's GIC Private Limited carried out one of the biggest investments in London's real estate market during 2013 by acquiring Blackstone's 50% stake in the Broadgate office estate.
Singapore's GIC Private Limited carried out one of the biggest investments in London's real estate market during 2013 by acquiring Blackstone's 50% stake in the Broadgate office estate.
GIC, formerly the Government of Singapore Investment Corporation, did not disclose the financial details of the transaction. However, sources cited by various media organisations put it at about £1.7 bn (€2 bn). This sum is similar to the amount paid by St Martins Property Group, the UK-based arm of Kuwait's oil-fuelled sovereign wealth fund, for the five-hectare More London estate in early December.
GIC acquired the 50% interest in Broadgate in the City of London from Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VI. The transaction includes Blackstone’s 50% interest in 5 Broadgate (5BG), a new office building which is due to be completed in 2015.
The other 50% of Broadgate and 5BG have been retained by British Land, one of the UK’s largest REITs and the asset and development manager for the estate.
Broadgate is a 437,000 m2 business district with 17 office buildings and retail and leisure amenities. 5BG will provide 66,000 m2 of office accommodation in the heart of Broadgate and is pre-let in its entirety to UBS.
Christopher Morrish, regional head for Europe at GIC Real Estate, said: 'Broadgate is an ideal addition to GIC’s value-driven global real estate portfolio. We believe it provides a rare opportunity to invest in a world-class asset. The estate will give us an attractive combination of stable long-term income with the potential to create additional value through active management, repositioning of the office buildings and by enhancing the retail and leisure offer. These efforts will retain Broadgate's attraction to a broad range of international occupiers.'