Singapore Developer Unloads London Office Bldg For £75mil
UNITED KINGDOM – Hoi Hup Realty, a real estate developer headquartered in Singapore, has divested an office building close to the northern edge of the City of London for £75 million ($100.1 million), reported Mingtiandi on Tuesday evening (30 November, SGT).
However, the commercial property was sold at a £2 million loss. The company purchased the Victorian-era building known as 1 Golden Lane in 2015 for £77 million. Back then, it was the first offshore asset it had acquired.
1 Golden Lane comes with 106,892 sq ft of office space that was entirely leased by UBS. However, the multinational financial firm declined to renew its lease this year and exited the premises in line with its property downsizing in London.
Knight Frank and Savills brokered the deal on behalf of the seller, while the buyer was advised by Allsop.
The office building was acquired by property investment firm Castleforge Partners, which intends to refurbish the property to enhance air flow, improve energy efficiency, and add automated systems.
“By undergoing a state-of-the-art refurbishment process, 1 Golden Lane will become one of the most premium and green office spaces in London and we look forward to unveiling the refreshed building for occupiers and local stakeholders alike,” said Castleforge Founding Partner Michael Kovacs.
“We have identified a significant shortage of best-in-class office buildings for leading companies in London that meet required sustainability standards. The market has not yet realised the true cost of upgrading old stock to meet modern standards and this issue can only be addressed by investors who are well-capitalised with the capability to deliver this grade of space.”
Located in Farringdon close to the Barbican Centre, 1 Golden Lane was originally completed in 1896. It used to house the Cripplegate Institute, a charitable foundation established by the City of London. Previously, the premises contained a theatre and a reference library
After Hoi Hup bought the office building in mid-2015, it purchased 2 Midtown properties in 2018, namely a mixed-use development in 322 High Holborn and an office complex in 44 Southampton.