Singaporean investor UOL Group has entered into an agreement to buy 120 Holborn, a 340,000 sq ft site in Hatton Garden.
UOL announced this morning that a newly incorporated joint venture, United Venture Investments (HI) Pte. Ltd (UVIHI), has entered into a sales and purchase agreement to acquire for £229.6m the freehold mixed used building located at 120 Holborn.
120 Holborn comprises an island site with a nine-storey office building let to tenants along with further offices at 100 Hatton Garden, which houses many jewellery businesses including the London Diamond Bourse (LDB), and retail units along Hatton Garden itself.
London Diamond Bourse chief Operating Officer, Victoria McKay, comments: “We and other tenants within the building have been aware for some time that the building was on the market. Many tenants are on short leases and the circumstances have made it difficult to discuss the future of the building with the landlords. We recently held a meeting for office tenants in 100 Hatton Garden and LDB’s Lease is the longest we have found – ending July 2019.”
She continues: “Overall, LDB views the news as positive – it may bring an end to the ongoing uncertainty surrounding the building. It is of concern that the new landlords have acquired the island site at 5.75% net yield and one would expect the new landlords will want to maximise this return. We are hopeful that the new landlords will enter into early and transparent conversation regarding the future of the building.”
According to CoStar a deposit of £22.96m has been paid and the balance of the purchase price will be paid on the completion of the transaction on 10 November 2016. 120 Holborn will be the Group’s third acquisition in the UK.