Singapore to buy London property for $2.7b

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BroadgateIn what will be the largest property deal for the UK since the financial crisis in 2008, Singapore’s sovereign wealth fund GIC is to buy 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12 hectares in the City of London financial district.

GIC, formerly known as Government of Singapore Investment Corp., will buy the stake from private equity giant Blackstone Group, which agreed to sell it for more than $2.7 billion, according to a Bloomberg report. British Land, a London-based property investment company, will continue to own the remaining 50 per cent stake in Broadgate.

The deal has been described as “a long-term strategic investment into a trophy asset” in London by analysts.

Singapore’s purchase is another in a row of property deals in London by Southeast Asian buyers. Malaysia’s palm oil giant Sime Darby with partner SP Setia, a large property developer, and Malaysia’s Employees’ Provident Fund bought London’s iconic Battersea Power Station in 2012 for around $600 million.

GIC had 10 per cent of its assets in real estate globally as of March 31, 2013, its latest annual report shows. The fund is ranked the 8th-biggest sovereign wealth fund worldwide, with assets estimated at $248 billion.

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Reading Time: 1 minute

In what will be the largest property deal for the UK since the financial crisis in 2008, Singapore’s sovereign wealth fund GIC is to buy 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12 hectares in the City of London financial district.

Reading Time: 1 minute

BroadgateIn what will be the largest property deal for the UK since the financial crisis in 2008, Singapore’s sovereign wealth fund GIC is to buy 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12 hectares in the City of London financial district.

GIC, formerly known as Government of Singapore Investment Corp., will buy the stake from private equity giant Blackstone Group, which agreed to sell it for more than $2.7 billion, according to a Bloomberg report. British Land, a London-based property investment company, will continue to own the remaining 50 per cent stake in Broadgate.

The deal has been described as “a long-term strategic investment into a trophy asset” in London by analysts.

Singapore’s purchase is another in a row of property deals in London by Southeast Asian buyers. Malaysia’s palm oil giant Sime Darby with partner SP Setia, a large property developer, and Malaysia’s Employees’ Provident Fund bought London’s iconic Battersea Power Station in 2012 for around $600 million.

GIC had 10 per cent of its assets in real estate globally as of March 31, 2013, its latest annual report shows. The fund is ranked the 8th-biggest sovereign wealth fund worldwide, with assets estimated at $248 billion.

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