RE: LONDON PROPERTY PURCHASE25 Mar 2017 08:10
20 Moorgate, London, EC2R 6DA
Location: In the heart of London, being less than 100 metres north of the Bank of England
Usage: Office/Commercial
Gross Floor Area :
Approximately 14,386 sq. m. (a seven-storey office building with grade A office, retail and ancillary accommodation arranged over lower ground, ground and seven upper floors)
http://www.asiangrowth.com/html/eng/property_oversea.html
The Property is fully let to two tenants under long term lease agreements. The office
accommodation is 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
Plc until 24 December 2039. The valuation of the Property as at 14 October 2016 by an
independent valuer was approximately £157 million (approximately HK$1,520.2 million). The
net profit before taxation and after taxation of the Trust (including the change in fair value of
investment property) for the year ended 31 December 2015 were both £6.0 million
(approximately HK$58.1 million)). The Acquisition represents a net initial yield of 4.4%.
Further details of the Acquisition are set out below.
BACKGROUND AND REASONS FOR THE ACQUISITION
Since the Company’s admission to AIM, the Company has been focused on developing its
property portfolio in Hong Kong and mainland China, however there is no geographical
restriction to its sphere of activities. It is the AGP Group’s strategy to review and optimise its
property portfolio from time to time with a view to achieving the greatest value for its
Shareholders. 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.