SINGAPORE - Mainboard-listed Ho Bee Land has made a second prime office acquisition in London's West End within a week, the property group said on Tuesday.

Its wholly owned subsidiary, HB Mayfair, has signed a sale and purchase agreement with Aberdeen Asset Management to acquire 110 Park Street, Mayfair, for £45.8 million (S$98 million).

After accounting for rental guarantee and rent top-ups, the net consideration is about £44.6 million.

Ho Bee said it acquired the property for recurrent income and will hold it as a long term investment.

The property is situated at the northern end of Park Street in Mayfair, one of the most exclusive districts of London's West End. The five-storey building was re-constructed behind its original Victorian facades in 1990-1991.

The property, which has a remaining leasehold of 106 years, It provides about 28,000 square feet of Grade A office accommodation.

It is multi-let with a weighted average unexpired lease term of 8.68 years to lease expiry and 5.4 years to tenant break options.

The total gross annual passing rent is at £2.1 million per annum, translating into an average rent of £77.77 per sq ft. The initial net yield is about 4.5 per cent based on net purchase price.

Said Ho Bee chairman and CEO Chua Thian Poh: "This brings our total investment in London to about £500 million in the last two years. Apart from the financial consideration, we like 110 Park Street for its Victorian façade. It has a classic and historic charm. Its address in Mayfair is also one of the most prestigious in the world."

The purchase of the property will be financed by internal funds and bank borrowings and is not expected to have any material impact on the consolidated earnings per share and net tangible assets per share of the group for the current financial year, Ho Bee said.

Last week, it announced it had acquired a freehold office building at 39 Victoria Street in London for £144 million from UK firm British Land.