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Singapore backs UK as country invests £700m in London property

Singapore backs UK as country’s sovereign wealth fund invests £700m in London property

Singapore has invested almost £700m in London property in a bid to give confidence to the capital.

The country’s sovereign wealth fund, GIC, has acquired a 75 per cent stake in the Paddington Central development from British Land for £694m.

The deal sees the FTSE 100 listed property developer enter into a joint venture with GIC.

Land grab: Singapore’s sovereign wealth fund GIC has bought a 75 per cent stake in the Paddington Central development (pictured) from British Land for £694m

British Land bought the Paddington Central mixed-use campus in 2013 for £470m. It has mostly office space as well as some retail and leisure properties, housing companies like Microsoft, Visa and Prudential.

The real estate developer added that two properties on campus, the Novotel at 3 Kingdom Street and the development site at 5 Kingdom Street, are not currently part of the joint venture.

British Land, which traces its history back to the 1850s, owns a vast property portfolio that includes parts of the City of London, the Meadowhall shopping center in Sheffield and campuses in mixed-use areas of office, retail, leisure and outdoor space.

Chief Executive Simon Carter said: ‘Paddington has been an excellent investment for British Land and this transaction is a great illustration of our strategy in action.’

Last month British Land advanced its plans to deliver an urban center for London to Canada Water. It sold 50 per cent of its stake in the Canada Water Masterplan to AustralianSuper pension fund for £290m.

British Land and AustralianSuper, which have over £140bn in assets under management, formed a 50:50 joint venture to launch what they described as “one of the largest and most enduring London regeneration projects in history”.

UK land stocks fell 1.9 percent.

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Singapore backs UK as country invests £700m in London property

Source link Singapore backs UK as country invests £700m in London property

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