British Land has announced that it has exchanged contracts for the sale of 39 Victoria Street SW1 to the Singaporean property company Ho Bee Land for a gross purchase price of £144 million, representing a net price of £139 million.
The ten-storey office building provides a total of 98,000 sq ft including the ground floor retail space. The property was acquired by British Land for £40 million in 2009 and underwent a substantial refurbishment in 2013.
It is let in its entirety to a government occupier until September 2029, with a break clause in July 2026, generating a rental income of around £6 million per year.
The disposal of the asset is in line with the company’s capital recycling strategy and follows the recent acquisition of One Sheldon Square at Paddington Central where British land is on site at 4 Kingdom Street and is making progress with its plans to improve the public realm.
Commenting on this morning’s announcement Tim Roberts, Head of Offices at British Land, said: “39 Victoria Street has been a good investment for us and is an excellent example of how we do business.
“Our refurbishment delivered a high quality building and attracted a high calibre occupier on a profitable lease. The timing of the disposal allows us to benefit from strong investment markets, and to allocate capital most appropriately across our business.”
This is not the first foray into the London market for Singaporean Exchange listed Ho Bee Land, as it already owns other assets in the capital including 1 St Martin’s Le Grand, 60 St Martin’s Lane and Rose Court.
2015 shaping up to be another Good Year for SEGRO