In September 2018, CDL acquired Aldgate House for £183 million (approximately S$328 million). The project is strategically located in the heart of Aldgate, one of London’s most vibrant districts, and is bounded by Aldgate High Street, Middlesex Street and St Botolph Street.
Enjoying excellent transportation connectivity, the property is right beside the Aldgate Underground Station. Six other Underground Stations – Aldgate East, Fenchurch Street, Liverpool Street, Tower Gateway, Tower Hill and Whitechapel – are within a five-minute walk, providing easy access to the West End, Midtown and Docklands
Being situated on a site with great frontage, the landmark Aldgate House benefits from excellent levels of natural light on all four elevations and provides stunning views from the full floor-to-ceiling glazing on all elevations. Aldgate House has Net Lettable Area (NLA) of approximately 211,000 square feet (sq ft) including Grade A office, retail and ancillary spaces over two basements, ground, mezzanine and eight upper floors. There is also a potential for Asset Enhancement Initiative (AEI) to add value and maximise positive rental reversions.
In October 2018, CDL purchased 125 Old Broad Street for £385 million (approximately S$687 million), making its second London commercial property acquisition in the year. The property is strategically located in the heart of London and within the main financial district. Bounded by Old Broad Street, Throgmorton Street and Threadneedle Walk, it overlooks St. Paul’s Cathedral and is just 100 metres from the iconic Bank of England headquarters.
125 Old Broad Street enjoys excellent connectivity across Central London with seven Underground Stations within a 10-minute walk. Bank Station (the closest Underground Station) is 200 metres from the building, while Liverpool Street Station (the busiest transportation hub in the City of London, which will be served by the Crossrail) is about 400 metres away.
Formerly known as the Stock Exchange Tower, the property housed the headquarters, offices and trading floor for the London Stock Exchange until 2004. The landmark building was originally constructed in the 1970s and had undergone significant refurbishment in 2008. As one of only two high-rise towers in a conservation area, the building enjoys magnificent and unblocked views of the city’s skyline.
125 Old Broad Street comprises a Grade A office tower and ancillary retail space and has NLA of approximately 329,200 sq ft spread over 26 floors with panoramic views of the city and three basement levels. The property provides a diversified and significant income stream with strong rental growth potential. It is fully leased to internationally renowned tenants, including Cushman & Wakefield’s European HQ, King & Spalding and China International Capital Corporation.
Mr Frank Khoo, CDL Group Chief Investment Officer, said “A key focus for CDL is to grow our recurring income significantly over the next 10 years through acquisitions and organic growth which will help to mitigate the volatility of development projects. Both acquisitions will enhance CDL’s recurring income portfolio.
We have confidence in the long-term fundamentals of London as a global financial hub with a robust office market. The short-term uncertainties surrounding Brexit have presented us opportunities to acquire assets with deep value. Capitalising on attractive pricing and yields, we have continued to expand our London commercial portfolio through strategic off-market acquisitions of high-performance assets. CDL will continue to seek opportunities in the UK to further enhance our recurring income streams.”
CDLHT acquires Hotel Cerretani Florence
CDL Hospitality Trusts (CDLHT) announced that it has acquired a 95% stake in Hotel Cerretani Florence, MGallery by Sofitel for €40.6 million. The hotel will continue to be marketed under the “MGallery by Sofitel” brand under an existing franchise agreement with AccorHotels, and operated by the existing lessee. The lessee is affiliated to the existing minority shareholder, which holds the remaining 5% stake and is part of EVENT Hotels group, the largest fully integrated hotel management platform in Germany with more than 80 hotels with 14,100 rooms across Europe.
Mr Vincent Yeo, Chief Executive Officer of CDLHT, said, “The acquisition represents a rare opportunity for CDLHT to penetrate a greatly sought-after hospitality market with high barriers to entry. We have also furthered our strategy of capitalising on the window of opportunity afforded by the low funding environment in Europe while broadening the earnings base of our portfolio. With a robust balance sheet and ample debt headroom, we will continue to seek compelling acquisition opportunities.”