Landsec has acquired 55 Old Broad Street, EC2, from PGIM Real Estate for a headline price of £87m and a net initial yield of 4.1% (topped up to 5.8%).
55 Old Broad Street, a 100,000 sq ft, 10 storey, office-led building, wraps around Landsec’s City office tower Dashwood and is situated a two minute walk from Liverpool Street station. The building is 87% let by income to businesses including Ecom Agrotrade, GB Rail Freight and Barclays.
Nick de Mestre, Head of Investment, Landsec, said: “55 Old Broad Street is a well-located asset in the heart of London. The development potential of this asset, combined with the potential for Dashwood, offers Landsec the opportunity to deliver a compelling, best-in-class destination over the medium term. This acquisition demonstrates our commitment to optimising our central London portfolio through the reinvestment of capital, as set out in our strategy.”
Charles Crowe, Head of UK Transactions at PGIM Real Estate, said: “I am pleased with the significant value we were able to create through our ownership of 55 Old Broad Street and its successful sale. PGIM Real Estate had reached the end of its business plan by achieving leasing stabilization post refurbishment and engineering a block date in 2024, that will enable a larger re-development of the site. The sale crystallizes a strong return since purchase in 2012.”
The deal has exchanged on an unconditional basis and is expected to complete in January.
Knight Frank represented Landsec. PGIM Real Estate was represented by Squarebrook and JLL.