GIC has acquired the 50% interest in Broadgate in the City of London owned by Blackstone Real Estate Partners Europe III and Blackstone Real Estate Partners VI. The transaction includes Blackstone’s 50% interest in 5 Broadgate (5BG), a new office building which is due to be completed in 2015.
The other 50% of Broadgate and 5BG have been retained by British Land, one of the UK’s largest REITs and the asset and development manager for the Estate.
Broadgate is a world renowned business district with 17 office buildings and complementary retail and leisure amenities. 5BG will be a new flagship 710,000 ft² (approx. 65,959 m²) office located in the heart of Broadgate and is pre-let in its entirety to UBS AG. Broadgate, which spans over 4.7 million ft², is well positioned to capitalize on the improving demand for prime office space in London as the UK economy recovers and the City maintains its prominence as a global financial center.
In addition, Broadgate has attracted a broad range of tenants from other sectors. The estate is located adjacent to the transport hub of Liverpool Street station and will benefit from direct access to a Crossrail station. Crossrail is a major new rail project that will boost connectivity between London’s main business nodes. It will also bring Heathrow Airport within 30 minutes of travel time from Broadgate. Crossrail is scheduled for completion in 2018.
Ken Caplan, Head of Real Estate for Blackstone in Europe, said: "Since we made our investment in 2009, we have had a number of successes at Broadgate that have further strengthened the estate. These include actively letting available space, making significant investment in refurbishing the estate and successfully retaining UBS as the major occupier of 5 Broadgate. All of this has reinforced Broadgate's position as an iconic estate in the City of London. We are delighted to be selling to such long-term and committed investors as GIC and we are sure that Broadgate will continue its success story."
Christopher Morrish, Regional Head, Europe, GIC Real Estate said: "Broadgate is an ideal addition to GIC’s value-driven global real estate portfolio. We believe it provides a rare opportunity to invest in a world class asset. The estate will give us an attractive combination of stable long-term income with the potential to create additional value through active management, repositioning of the office buildings and by enhancing the retail and leisure offer. These efforts will retain Broadgate's attraction to a broad range of international occupiers."