SINARMAS LAND: Potential securitisation of property portfolio

Alphabeta is the newest architectural expression of the 'new economy'. Photo: Alphabeta

Sinarmas Land announced that it has acquired a freehold prime commercial property in London, Alphabeta Building, for £258.7m (S$551.3m).

The property, which has net leasable area of 243,850 sq ft, is a Grade A office property in eastern London near the Shoreditch area and is fully leased with a weighted average lease expiry of 13 years.

The total acquisition price of £280m reflects a cap rate of 4.5% and has provision for future positive rent reversion.

Alphabeta Building is the third London property that SML is acquiring following the purchase of New Brook Building in May 2013 and Warwick House in September 2014.

New Brook was subsequently sold for a 45% gain.

SML is bulking up its commercial property portfolio in gateway cities overseas for a potential securitisation down the road.

Earlier in May, the group successfully listed its industrial real estate arm in Greater Jakarta on the Indonesia bourse. We have a Buy rating on the stock with a SGD1.01 TP.