UNITED Engineers (UE) has inked a deal to acquire two properties from Hewlett Packard Singapore, in a move to expand its real estate portfolio.

The firm told the Singapore Exchange on Monday that it will buy the freehold industrial building at 452 Alexandra Road and the freehold commercial office tower at 450 Alexandra Road for a total of $402 million.

The acquisition will be funded wholly in cash, and will bring the net book value of the group's properties under management to over $2 billion, UE said.

UE's latest purchase comes on the back of its acquisition of a freehold commercial building at 79 Anson Road in February for $410 million.

"The group has been steadily building up a portfolio of well-located and tenanted commercial and industrial properties across Singapore to complement its property development activities," the group said.

Under the terms of the purchase agreement, Hewlett Packard will lease back the 345,101 sq ft industrial building for five years, with three options to renew it for another five years each.

In addition, the computer manufacturer will also lease back the commercial building, with a gross floor area of 155,932 sq ft, for three years. This also includes two options to renew the lease for six months each.