City Developments Limited buys 125 Old Broad Street for €432.9m
Singapore-listed City Developments Limited (CDL) bought London’s former stock exchange tower, 125 Old Broad Street, for €432.9m. The freehold Grade A office tower is located in the city’s financial district within walking distance to the Bank of England’s headquarters as well as seven underground metro stations. The tower housed the London Stock Exchange until 2004. Originally built in the 1970s, the property underwent an extensive renovation in 2008. It offers a total of 329,200 sq ft on 26 floors as well as security parking facilities. Tenants include Cushman & Wakefield, King & Spalding and China International Capital Corporation.
“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. We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market,” said Frank Khoo, chief investment officer for CDL Group. “The short-term uncertainties surrounding Brexit have presented us opportunities to acquire assets with deep value. Capitalizing on attractive pricing and yields, we have continued to expand our London commercial portfolio through strategic off-market acquisitions of high-performance assets. The tightening of London’s existing office stock and limited new supply will also drive rental growth into 2021.”