Sinar Mas sells commercial building in London for $292 million

33 Horseferry Road in London is home to the UK Department of Transport

Sinar Mas Land continues to trade actively in the London property market, with the Singapore-listed property company announcing a deal on Wednesday to sell a commercial building near Westminster for £247.5 million ($292.3 million).

The Indonesian Widjaja family-controlled developer has agreed to sell the freehold property known as 33 Horseferry Road to LTH Property Holdings 3 Ltd, Sinar Mas said in a filing with the Singapore Stock Exchange. The buyer is a wholly-owned subsidiary of Lembaga Tabung Haji, a Malaysian state-owned company that funds pilgrimages to Mecca by making Sharia-compliant investments.

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The five-story building has a net leasable area of ​​180,600 square feet (16,778 square meters), including 163,761 square feet of Class A office space and 16,839 square feet of retail space on the ground floor. pavement. The offices are fully leased to the UK Secretary of State for Transport until 2033.

“The proposed divestment offers the group the opportunity to earn an attractive rate of return on its investment,” Sinar Mas said in the filing. The company bought 33 Horseferry Road in June 2017 for £188.6million, suggesting a gain of over 31% once the deal was completed in early August.

In the heart of Victoria

33 Horseferry Road is in a prime location in Victoria, a key commercial and residential area of ​​central London, less than 10 minutes’ walk south of Westminster Abbey.

Muktar Widjaja, President of Sinar Mas Land

Muktar Widjaja, President of Sinar Mas Land

Lembaga Tabung Haji is paying around £1,370 ($1,618) per square foot of net leasable area for its new price. The Malaysian group’s previous London holdings included an office building, 151 Buckingham Palace Road, which was sold to a consortium of private investors led by Hong Kong’s Gaw Capital Partners in 2015.

News of the Horseferry deal comes two months after Sinar Mas revealed plans to buy a retail property in London’s Charing Cross district for £195 million ($238 million).

The freehold building at 32-50 Strand, comprising 139,000 square feet over basement, ground floor and eight upper floors, was purchased from London property giant Land Securities Group, known as Landsec.

Familiar Grounds

The acquisition of 32-50 Strand marked the return of Sinar Mas as a buyer to the London market after a lull of several years.

In April last year, the company chaired by Muktar Widjaja revealed that it was selling its entire stake in 10 Great Pulteney Street, a building known as Unlimited House, for £72million ( $99.3 million) in cash to British online fashion retailer Boohoo.

Built in 1997, the seven-storey Unlimited House (formerly known as Warwick House) comprises 44,116 square feet of Grade A office space and a five-unit, 2,928 square foot self-contained residential block.

Sinar Mas previously acquired the Alphabeta office building in Finsbury Square for £259m in 2015. The Indonesian giant also has overseas properties in Malaysia, Australia and mainland China, where its portfolio of projects includes Shanghai Sinar Mas Plaza and Shanghai Arch, Shanghai Bund Center and Ningbo Sinar Mas Plaza in Zhejiang Province.

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