CDL expands U.K. commercial portfolio, acquires office tower in central London for £385m

City Developments Limited (CDL) has acquired a freehold grade A office tower, 125 Old Broad Street, for £385 million ($493 million). The property is strategically located in the heart of London and within the main financial district.

This is the firm’s second London commercial property acquisition in 2018. In September, CDL acquired Aldgate House, a freehold grade A commercial building in London for £183 million ($235 million).

Formerly known as the Stock Exchange Tower, 125 Old Broad Street housed the headquarters, offices and trading floor for the London Stock Exchange until 2004. The landmark building is fully leased to internationally renowned tenants, including Cushman & Wakefield’s European HQ, King & Spalding and China International Capital Corporation.

“We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market,” said Frank Khoo, CIO 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. Given its excellent location in a diverse business district, 125 Old Broad Street will continue to attract a strong tenant mix from the finance, legal, insurance and technology/media/telecommunications sectors.”

City Developments Limited is a global real estate operating company and is one of the largest companies listed on the Singapore Exchange. The firm has a network spanning 100 locations in 28 countries and regions. Its income-stable and geographically-diverse portfolio comprises residences, offices, hotels, serviced apartments, integrated developments and shopping malls.