(Bloomberg) – GIC Pte has agreed to buy a majority stake in an office campus in London’s Paddington area from British Land Co. for £694 million ($888 million), according to a statement Monday.
Singapore’s sovereign wealth fund will own a 75 percent stake in Paddington Central once the unconditional deal closes within the next three months, the statement said. The deal values the properties about 1% below British Land’s September book value.
London offices with long leases and strong green credentials continue to attract global investors even as Covid-19 casts a shadow over the future of the workplace. They are betting that despite the declining appeal of older and less environmentally friendly buildings, demand for the limited supply of modern space will remain high.
“We are seeing a recurring demand to add new quality office space in prime locations,” said Tracy Stroh, GIC’s European Real Estate Manager.
The transaction will create the second major London property venture between British Land and GIC, who jointly own the Broadgate campus in the City of London. British Land originally bought Paddington Central in 2013 for £470m and has continued to develop the campus ever since.
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