Hwa Hong Corporation has announced that via its wholly-owned subsidiary, Singapore Warehouse Company, has committed to invest GBP15 million in a fund Shorea Capital London Office Fund LP.
As the name of the fund suggests, it will be investing in “value-add opportunities” in the central London commercial property market.
The fund aims to raise GBP100 million by March 2022. It now has around GBP40 million.
SEE:Hwa Hong makes foray into UK office sector with $32.4 mil London property purchase
Hwa Hong is acting as a sponsor to the fund by committing to contribute GBP15 million through a combination of cash and its 50% interest in a London property at 46 Loman Street.
“As highlighted in the group’s recent AGM, the investment will allow the group to leverage on its track record and experience investing in the London office property market to build its real estate assets under management business,” states Hwa Hong.
The investment is not expected to have a material impact on Hwa Hong’s earnings per share and net tangible assets for the financial year ending 31 December 2021.
Hwa Hong shares closed May 12 unchanged at 28 cents.
