HPL announced that it has acquired a 30% interest in Bankside Quarter (Jersey) Limited (BQJ) to acquire two properties, Ludgate House and Sampson House, located in Bankside, the London Borough of Southward, London, England. BQJ will acquire both assets for a consideration of GBP308m, and HPL intends to finance its share of the investment through third-party loan financing and internal resources.

The properties are located in Bankside, which is centrally located at the heart of the SouthBank and Bankside Cultural Quarter, and the freehold site is ~5.3 acres. We understand that the properties are acquired with an existing consented scheme comprising ~552k sq ft NIA of private residential accommodation, 285k sq ft of offices and 36k sq ft of retail and leisure space, and that BQJ will review and evaluate the scheme after the acquisition completes. Pending its completion and more color regarding the redevelopment, we opt to keep our fair value estimate of S$5.32 unchanged. Maintain BUY.

Source: OCBC Research - 31 Mar 2015