Sinarmas Land has acquired a London property while Ascott Residence Trust has divested two China properties.
Sinarmas Land purchases London commercial property
Sinarmas Land has acquired 33 Horseferry Road, a prime commercial building in London, for a consideration of £188.6 million. The building is located in Victoria, a principle commercial and residential distr
The property has a net leasable area of 180,600 sf, with the freehold commercial building comprising 163,761 sf of Grade A office accommodation.
The office space is currently leased to the UK Government’s Secretary of State for Transport, with a weighted average lease expiry (WALE) of about 17 years. The retail accommodation is currently fully leased to high-quality tenants that include National Westminster Bank, Pret A Manger, William Hills and Starbucks.
Margaretha Widjaja, Sinarmas Land’s Executive Director, says, “Combining Warwick House, Alphabeta Building and 33 Horseferry Road, the group will own and asset-manage close to 500,000 sq ft of strategically located freehold commercial space in Central London with asset-under-management in excess of $1 billion.”
Ascott Residence Trust divest two China properties
Ascott Residence Trust is divesting its interests in two serviced residence properties in China – Citadines Biyun Shanghai and Citadines Gaoxin Xi’an – for an aggregate consideration of RMB 980 million.
Net sale proceeds, estimated at RMB 239 million, may be used to pare down the debt of Ascott REIT and its subsidiaries. Alternatively, these may be used to fund potential acquisitions and other general corporate purposes.
The conditional agreements are through Ascott REIT’s wholly-owned subsidiaries Biyun Investments (Hong Kong) and Gaoxin Investments (Hong Kong), which will divest their interests in Gain Mark Properties (Shanghai) and Citadines (Xi’an) Property Co., the companies holding the properties.
The divestments were made to unlock the value of the properties whose growth prospects are seen to be limited due to “changes in the operating environment” and will see the proceeds redeployed to other higher yielding assets.