Asian Growth Properties (AGP), a London listed investor-developer focused on Hong Kong and mainland China, has purchased a City of London office building from Deutsche Fonds Holding.
The investment volume in the share deal comes to £154 mln (€173 mln), reflecting a net initial yield of 4.4%.
Acquired via a share deal, 20 Moorgate in London EC2 was developed in 2002 and is located less than 100 metres north of the Bank of England. The property provides almost 14,390 m2 of Grade A office, retail and ancillary accommodation arranged over lower ground, ground and seven upper floors. The valuation of the property by an independent valuer in mid-October 2016 was £157 mln.
The office space is occupied by the Bank of England's Prudential Regulatory Authority (PRA) until 30 June 2027, while the single retail unit is leased to brewer and pub company Fuller, Smith & Turner until 24 December 2039.
Deutsche Fonds hired JLL and CBRE to market the building in March this year.
AGP is paying £75 mln to acquire all the shares in the trust that owns the property and £79 mln to repay debt on the building.
Registered in the British Virgin Islands in 2004, AGP is headquartered in Hong Kong and has been listed on London's junior market AIM since 2006. The company is positioned as an investor and developer of commercial office, retail and residential properties in Hong Kong and mainland China, as well as a hotel owner and operator. However, there is no limitation on where it can invest.
In a statement, AGP said the transaction was 'an excellent opportunity for the company to acquire a high-quality commercial property at a prime location in the City of London with a stable rental income.'
Property adviser Knight Frank and law firm DLA Piper advised Deutsche Fonds in the transaction, with law firm Mayer Brown advising AGP.
