Singapore-listed investor buys London office for £183m

Singapore-based property developer City Developments has acquired a class A commercial building, Aldgate House, in London for £183 million ($240 million).

The sellers were Hermes Investment Management and Canada Pension Plan Investment Board’s London office joint venture. In November 2013, Hermes and CPPIB acquired Aldgate House from Railways Pension Trustee Co. as part of their 50-50 office joint venture.

Aldgate House has a net lettable area of 211,000 square feet including office, retail and ancillary spaces over two basements, ground, mezzanine and eight upper floors. It has an occupancy rate of 88 percent.

CDL said the acquisition was undertaken “as part of its focus on expanding recurring income in global gateway cities.”

CDL said Central London’s office market outlook is positive as rental growth is expected to continue into 2021, strengthened by demand and tightening of both existing office stock and new supply.

Second quarter 2018