Asian Growth Properties Limited (AGP) is pleased to announce that, Tycoon Honour Limited and Worthy Merit Limited (both of which are indirect wholly-owned subsidiaries of AGP) purchased from PFM EuroSelect Elf GmbH & Co KG and Lapis Grundstucksverwaltungs-GmbH the entire issued Units in the Trust that owns the property known as 20 Moorgate, London, EC2R 6DA, pursuant to the terms of the S&P Agreement for a total consideration of approximately €179.4m (£154m).
The AGP Group funded the acquisition from its existing cash resources and a new five year term loan facility of approximately €116.5m (£100m) from HSBC. The bank loan is secured by a mortgage over the property.
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 €182.9m (£157m). 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 €6.9m (£6m). The acquisition represents a net initial yield of 4.4%.
