GIC buys stake in London financial district complex for reported S$3.4b

SINGAPORE — GIC is the buyer of Blackstone’s stake in London’s Broadgate office complex, according to two sources with knowledge of the transaction.

GIC — formerly known as the Government of Singapore Investment Corporation — is buying 50 per cent of Broadgate, a cluster of 16 office buildings, shops and restaurants on 12 hectares in London’s main financial district, according to the sources, who asked not to be named because the deal is private. Bloomberg reported two days ago that Blackstone agreed to sell the stake for more than £1.7 billion (S$3.4 billion).

PropertyWeek.com also reported yesterday that the fund was the buyer. Spokesmen for GIC and Blackstone declined to comment on the transaction.

The purchase is the latest trophy acquisition for GIC. The fund last year invested in 101 California St, an office tower in San Francisco’s financial district, and in March acquired the Grand Wailea in Maui and four other resorts from a group for US$1.5 billion (S$1.92 billion).

GIC had 10 per cent of its assets in real estate globally in the 2012 fiscal year, according to its annual report.

The sale of the Broadgate interest would “certainly be among the biggest office deals” in Europe, according to Mr Dan Fasulo, Managing Director of Real Capital Analytics. New York-based Blackstone bought the stake from British Land in a 2009 deal that valued the complex at £2.1 billion.

British Land retains the other half of Broadgate. BLOOMBERG