HPL announced that it has acquired a 30% interest in Bankside Quarter (Jersey) Limited (BQJ) to purchase two properties, Ludgate House and Sampson House, located in Bankside, the London Borough of Southward, London, England. BQJ will acquire both assets for a consideration of GBP308m, and HPL intends to finance its share of the investment through third-party loan financing and internal resources. The properties are located in Bankside, which is at the heart of the SouthBank and Bankside Cultural Quarter, and the freehold site is approximately 5.3 acres. We understand that the properties are acquired with an implementable existing planning permission comprising ~552k sq ft NIA of private residential accommodation, 285k sq ft of offices and 36k sq ft of retail and leisure space, and that BQJ will review and evaluate the scheme after the acquisition is completed. Pending completion of this acquisition and more color regarding redevelopment, we opt to keep our fair value estimate of S$5.32 unchanged. Maintain BUY.
Acquires 30% stake in two London properties
HPL announced that it has acquired a 30% interest in Bankside Quarter (Jersey) Limited (BQJ) to purchase two properties, Ludgate House and Sampson House, located in Bankside, the London Borough of Southward, London, England. BQJ will acquire both assets from The Carlyle Group for a consideration of GBP308m, and HPL intends to finance its share of the investment through third-party loan financing and internal resources. We understand BQJ has already paid GBP15.4m (5% of the purchase price), and the remaining GBP292.6m will be transferred on the date of completion expected in May 2015.
Site is acquired with existing planning permission for redevelopment
The properties are located in Bankside, which is at the heart of the SouthBank and Bankside Cultural Quarter and is accessible through rail and underground connections at London Bridge, Waterloo, Southwark and Blackfriars stations. In addition, the Blackfriars Station southern entrance provides direct access to Bankside. The acquired properties stand on a rectangular freehold site approximately 5.3 acres in land area. Ludgate House, a 9-storey building, comprises ~172k sq ft of office space and is tenanted by United Business Media until Mar 2015, and Sampson House, a 6-storey building, comprises ~355k sq ft leased out to IBM until Dec 2015 (with a mutual break in June 2018). We note that the properties are acquired with an implementable existing planning permission obtained by the seller which consists of ~552k sq ft NIA of private residential accommodation, 285k sq ft of offices and 36k sq ft of retail and leisure space, and that BQJ will review and evaluate this planning permission for redevelopment after the acquisition is completed.
Further diversification of asset portfolio
Given persistent headwinds in the Singapore residential space, we like that management continues to actively diversify their asset portfolio into high quality assets overseas. Pending completion of this acquisition and more color regarding redevelopment, we opt to keep our fair value estimate of S$5.32 unchanged. Maintain BUY.
HPL announced that it has acquired a 30% interest in Bankside Quarter (Jersey) Limited (BQJ) to purchase two properties, Ludgate House and Sampson House, located in Bankside, the London Borough of Southward, London, England. BQJ will acquire both assets from The Carlyle Group for a consideration of GBP308m, and HPL intends to finance its share of the investment through third-party loan financing and internal resources. We understand BQJ has already paid GBP15.4m (5% of the purchase price), and the remaining GBP292.6m will be transferred on the date of completion expected in May 2015.
Site is acquired with existing planning permission for redevelopment
The properties are located in Bankside, which is at the heart of the SouthBank and Bankside Cultural Quarter and is accessible through rail and underground connections at London Bridge, Waterloo, Southwark and Blackfriars stations. In addition, the Blackfriars Station southern entrance provides direct access to Bankside. The acquired properties stand on a rectangular freehold site approximately 5.3 acres in land area. Ludgate House, a 9-storey building, comprises ~172k sq ft of office space and is tenanted by United Business Media until Mar 2015, and Sampson House, a 6-storey building, comprises ~355k sq ft leased out to IBM until Dec 2015 (with a mutual break in June 2018). We note that the properties are acquired with an implementable existing planning permission obtained by the seller which consists of ~552k sq ft NIA of private residential accommodation, 285k sq ft of offices and 36k sq ft of retail and leisure space, and that BQJ will review and evaluate this planning permission for redevelopment after the acquisition is completed.
Further diversification of asset portfolio
Given persistent headwinds in the Singapore residential space, we like that management continues to actively diversify their asset portfolio into high quality assets overseas. Pending completion of this acquisition and more color regarding redevelopment, we opt to keep our fair value estimate of S$5.32 unchanged. Maintain BUY.
No comments:
Post a Comment