In a big-ticket cross-border real estate deal, Singapore Mainboard-listed Ho Bee Land Limited, engaged in property development and investment, has announced the acquisition of Frasia Properties S.à.r.l (FPS), owner of an office asset in London, for £650 million ($861.5 million).

The property acquired is a 21-storey office building in London, Ropemaker Place, which sits on a 1.37 acre site, it said in its filing.

The acquisition was made through Grandeur Property Investments Ltd, a wholly-owned subsidiary of Ho Bee Land.

The deal comes five years after FPS, represented by AXA Investment Managers – Real Assets, purchased the freehold property from developer British Land. The property was bought for a gross sales price of £472 million ($625 million).

With the Ropemaker Place deal, Ho Bee Land’s investment portfolio in London now stands at $1.7 billion. Its London investments constitute 41 per cent of the Group’s portfolio. Ho Bee Land also has investments in Singapore, Australia and China.

“The acquisition allows the Group to substantially grow its robust and sustainable recurrent income base,” said Poh.

Ho Bee Land has made other commercial and residential investments in the UK including Apollo and Lunar House, Grade A office buildings in  Croydon and Lombard Street, respectively.

“The combination of long weighted average income lease term and strong covenants of the tenants will provide us with a steady and secure income stream,” according to the release.

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