Sinar Mas Buys Office Building in Central London for $268m

33 Horseferry Road office building in Central London, United Kingdom. (Photo courtesy of Sinar Mas Land)

By : Sarah Yuniarni | on 10:21 PM July 10, 2017
Category : Business, Property

Jakarta. PT Sinarmas Land, the property holding arm of diversified conglomerate Sinar Mas group, through its Singapore-listed subsidiary Sinar Mas Land Ltd, acquired an office building at 33 Horseferry Road in Central London last month for $268.69 million, the company said in a statement on Monday (10/07).

PT Sinarmas Land, through Sinar Mas Land Ltd, acquired the office building on June 29 through Horseferry Property, a UK-based property company, the statement said.

"We are optimistic about the prospects of the commercial property market in London. The acquisition is our investment opportunity and certainly will strengthen Sinar Mas Land's portfolio of investment. It also gives us a chance to develop retail outlets in Victoria district, which is nearby the UK's parliament [office building]," said Ferdinand Sadeli, Sinarmas Land Ltd chief financial officer and executive director.

Ferdinand also said the office building has long been operational and has been leased to high-profile tenants, including UK's Secretary of State for Transport, which has a weighted average lease expiry for 17 years.

The five-storey building on Horseferry Road has 15,213 square meters of office space and 1,564 square meters of retail space, and currently houses tenants like the National Westminster Bank, sandwich shop chain Pret A Manger, bookmaker William Hills and coffee chain Starbucks.

Sinar Mas group expects that its recent acquisition will contribute significantly to its property business' recurring income.

The 33 Horseferry Road building is the fourth that Sinarmas has acquired in London.

In October 2015, PT Sinarmas Land bought Alphabeta office building – located at Fisbury Square in London – for $ 558.5 million.

In 2014, the company acquired Warwick House, located in the Soho area, for $73.7 million.

A year prior, Sinar Mas also acquired New Brook Buildings on Queen Street for $108 million but sold it a year later for $145 million.

PT Sinarmas Land is the holding company of Indonesian-listed property developer Bumi Serpong Damai and industrial developer Puradelta Lestari.

The group has a significant number of investments in China, Singapore, Malaysia, Indonesia and the United Kingdom.

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