GIC Private, the Singaporean sovereign wealth fund, and UK REIT British Land have created Broadgate REIT Limited, a real estate investment trust, to act as the new holding company for their joint venture in London office complex Broadgate.
The change in structure will not involve any change to either party's economic interest in Broadgate. The pair are 50:50 owners of the complex which comprises 17 office buildings as well as retail and other leisure amenities.
GIC acquired its stake at the beginning of last year buying out Blackstone in a deal reportedly valued at more than £1.7 billion (€1.98 billion; $2.66 billion). The investment is GIC’s biggest real estate holding in Europe.
British Land will continue to act as the asset and development manager of the estate.
The UK’s REIT legislation has been continually amended since its introduction in 2007 and was amended again last year to allow REITs, such as British Land, to invest in standalone REITs alongside institutional investors, like GIC.
Founded in 1981 to manage Singapore’s foreign reserves, GIC has been investing in real estate since 1982. Formerly known as the Government of Singapore Investment Corporation, GIC currently has a 10 percent allocation to real estate.