Singapore investors snap up former stock exchange building for £385m

PA

The former site of the London Stock Exchange has been sold to Singapore-listed City Developments Limited (CDL) in a £385 million deal.

The sale of 125 Old Broad Street, formerly known as the Stock Exchange Tower, marks the latest transaction in a flurry of investments made by Asian investors in London’s office buildings.

Frank Khoo, group chief investment officer at CDL, said: “In line with our strategy to grow our recurring income significantly over the next 10 years, this is our second London commercial property acquisition in 2018.

Stock Exchange
Stock Exchange

“We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market.

“The short-term uncertainties surrounding Brexit have presented us opportunities to acquire assets with deep value.”

Cushman & Wakefield, which has its European headquarters in the building, advised on the sale. Other tenants of the fully-occupied property include King & Spalding and China International Capital Corporation.

According to the property advisers, demand for central London office space is growing. Space under offer is 27% above the 10-year average.

Asian investors have become major buyers following the drop in the value of the pound in 2016.

Chinese investment group Hengli Investments Holding Group last year signed a 20-year lease on Lloyds Banking Group’s headquarters for an undisclosed sum.

That deal came shortly after Cheung Kei Group forked out £270 million for a Canary Wharf tower which lets to businesses including US banking giant JP Morgan as well as Time Inc, American Express, Balfour Beatty and Cision Gorkana.

The company bought the site, at 5 Churchill Place, from Said holdings.

London city stock
London city stock

Hong Kong food conglomerate Lee Kum Kee earlier spent £1.3 billion buying out Canary Wharf Group’s and Land Securities’s 50% stakes in the “Walkie Talkie” skyscraper in June.

London’s landmark “Cheesegrater” building was also sold to the investment vehicle of Chinese property magnate Cheung Chung Kiu for £1.15 billion.