SINGAPORE - Hotel Properties is expanding in London with a £111 million purchase of a freehold site in Paddington. It plans to develop homes and shops on the site.

It is teaming up with Anchorage View in a 70:30 joint venture to acquire the site of the former Royal Mail Delivery Offices in Paddington.

Paddington Station is a central hub of the London underground network.

Hotel Properties said that the site includes three 3 interconnected buildings which are now vacant. The total land area is approximately 1.11 acres.

If planning permission is granted, the joint venture will have to pay the seller Royal Mail an additional £20 million.

Anchorage View is a company owned jointly by Hotel Properties owner Ong Beng Seng and Hotel Properties director David Fu.

OSK-DMG Research wrote on Wednesday morning that Hotel Properties is stepping up its investments in overseas markets to further build up recurring income and a development pipeline. It may also be looking to develop its ageing assets in the Orchard Road belt. The brokerage says the stock is worth $6-$8 under this scenario.