Keppel Land to invest in freehold office building in London

Keppel Land is buying a freehold nine-storey office building at 75 King William Street in London for 91 million pounds (S$186 million), it said on Monday. -- PHOTO: KEPPEL LAND
Keppel Land is buying a freehold nine-storey office building at 75 King William Street in London for 91 million pounds (S$186 million), it said on Monday. -- PHOTO: KEPPEL LAND

SINGAPORE - Keppel Land is buying a freehold nine-storey office building in London for 91 million pounds (S$186 million), it said on Monday.

The building at 75 King William Street is near Bank Junction, London's financial centre, where the Bank of England is.

The property has a total internal area of 130,000 sq ft, and is almost 100 per cent occupied by tenants in the financial services, shipping and serviced office industries.

The investment will be managed by Keppel Land's fund management unit, Alpha Investment Partners.

Mr Ang Wee Gee, Keppel Land's chief executive, said in a statement that the investment is in line with its strategy to "invest opportunistically" in key global cities with good growth potential.

The building is less than a five-minute walk to the Bank tube station, Monument and Cannon Street stations. It is also about a 12- to 15-minute walk to the Liverpool station, which is part of the network on the upcoming Crossrail.

The Crossrail will offer a high speed train service for direct journeys across the east-west axis of London in 2018.

Keppel noted that the office market in the city benefits from a diversified industry mix driving office-based employment growth, and this is expected to stimulate office demand further and lead to healthy absorption to 2017.

Mr Ang added: "With continued growth in the financial services and new emerging industries such as the technology, media and telecommunications sectors, the London office market is expected to remain healthy."

The transaction is not expected to have any material impact on the net tangible asset per share or earnings per share of Keppel Land Group for the current financial year.