CDL buys Aldgate House from Hermes and CPPIB

Singapore-listed City Developments Ltd (CDL) has bought Aldgate House in the City of London for £183m. The eight-storey, 211,000 sq ft office building was sold by Hermes Investment Management and Canada Pension Plan Investment Board (CPPIB). Aldgate House is let to four tenants – clearing house LCH, fit-out contractor ISG, and tech firms Taboola Europe and Transperfect Translations – and generates more than £9m per year in rent at an average of £43.50 per sq ft. In June, EG reported that Hermes Investment Management and CPPIB were looking to sell Aldgate House for £175m, representing a net initial yield of 5.25%. The weighted average unexpired lease term is 7.4 years to expiry and 5.4 years to breaks. The building has an occupancy rate of 88%. Chris Taylor, head of private markets at Hermes Investment Management, said: “The disposal of Aldgate House marks the culmination of a proactive asset management strategy. This has included significant refurbishment works and the regearing of leaseholds within the building. “Capital from this sale will be put towards the selective acquisition of assets, both within the City of London and further afield, that present an opportunity for added value to be achieved.” 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. This acquisition will enhance CDL’s recurring income portfolio. We see tremendous potential in this prime commercial building and we continue to believe that London will remain as a global financial hub.” JLL and Corbett Northam acted on behalf of Hermes Investment Management and CPPIB. To send feedback, e-mail anna.ward@egi.co.uk or tweet @annaroxelana or @estatesgazette