Property Frases buy Cisco UK Headquarters for £ 135 million

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Shadrach   in Property & Land

Last updated: 25 January 2020, 05:23 GMT


Frasers Property is betting on the UK's tech sector as it adds another commercial asset to its UK portfolio, according to a developer controlled by Thai billionaire Charoen Sirivadhanabhakdi today announced to the Singapore stock exchange.

According to the announcement, the company has signed a selling and purchase agreement to buy Lakeshore, a business park in suburban London, for £ 135 million ($177.44 million), with Mingtiandi having named the seller as Evans Randall, a British private investment firm.

Frasers will add the lettable area of 272,000 square feet (25,270 square meters) of the land to its existing set of six UK business parks, as the company based in Singapore continues to hunt for European property assets.

 

Creating a 7th Business Park in the UK

According to the announcement, Frasers is financing the acquisition of the office complex in Bedfont Lakes, Feltham, Middlesex from its own internal resources, with the purchase price corresponding to £ 496 per square foot of lettable area. The three building freehold site is rented to networking firm Cisco Systems, which uses the business park as their UK headquarters campus, on a long term basis.

Evans Randall, who invested in such high-profile British ventures as the Gherkin in London City and 5 Canada Square on Canary Wharf, acquired the Lakeshore for £ 156 million in 2006, in what was then a record deal.

The Lakeshore deal, which is situated just over 20 miles (32 kilometers west of central London along the Great South-West Route, came over two years after Frasers acquired £ 686 million from a group of five business parks near London and Glasgow.

 

In acquiring the group of assets from U.S. fund manager Oaktree Capital Management, Frasers CEO Panote Sirivadhanabhakdi said at the time, "The purchase is in line with the plan of the Company to expand overseas presence and recurring sources of income."

Singapore Still Loves the UK

Frasers has started a series of European property purchases with this new transaction as the firm, like many of its Singapore peers, is looking for value of property assets in the UK and in the continental region.

 

Earlier this month, the commercial subsidiary of Frasers finalized the acquisition of a pair of industrial properties in Germany that were part of a set of 22 assets purchased from developer Alpha Commercial through its $353 million takeover in 2018.

In December, Singapore Press Holdings added £ 448 million to its portfolio of UK assets by buying a student housing portfolio near some of the country's top universities to add 2.383 beds to its existing set of student properties.

In July 2019, Singapore's Stamford Land Company followed the late-year deal in a joint venture with a private company owned by its owner, buying 8 Finsbury Circus in the City of London for £ 260 million to make its UK debut.