Hong Kong investor buys 20 Moorgate

[caption id="attachment_795048" align="alignright" width="200"] 20 Moorgate, EC2[/caption] Hong Kong-listed Asian Growth Properties has bought a City office building let to the Bank of England for around £154m – a net initial yield of 4.4%. AGP, which has a portfolio focused on Hong Kong and mainland China, agreed a deal last night to buy 20 Moorgate, EC2, from Deutsche Fonds Holdings AG. The investor bought the 154,854 sq ft property through subsidiary investment holding companies Tycoon Honour Limited and Worthy Merit Limited. The purchase was funded from its existing cash resources and a new five-year term loan facility of around £100m from HSBC. Some £75m in cash was paid for the entire issued units in the trust subject to post-completion adjustments, and a further £79m to cover repayment of the total redemption amount due by Deutsche Fonds to its lender. JLL and CBRE were appointed by Deutsche Fonds in March to sell the property for around £160m – a yield of 4%. The offices are occupied by the Prudential Regulatory Authority (a regulatory body of the Bank of England) until 30 June 2027 and the sole retail unit is let to Fuller, Smith & Turner until 24 December 2039. AGP expects the property to generate an annual rental income of £7.5m. AGP said although it had been focused on developing its property portfolio in Hong Kong and mainland China, there was “no geographical restriction to its sphere of activities”. It said: “Following the disposal of several projects earlier this year, the company has been identifying potential acquisition targets in both local and major international markets. The acquisition is 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.” Knight Frank advised AGP. • To send feedback, e-mail louisa.clarence-smith@estatesgazette.com or tweet @LouisaClarence or @estatesgazette