Landsec Sells One New Street Square for £349.5 Million
Posted on 01/29/2023
Revealed on January 27, 2022, Land Securities Group Plc (Landsec) announced that it has exchanged contracts for and completed on the sale of One New Street Square, EC4 to Chinachem Group, a property developer based in Hong Kong with a real estate portfolio of 8.4 million square feet valued at US$ 13.7 billion.
The total consideration for the sale amounts to £349.5 million. The sale price compares to a September 2022 valuation of £362.8 million. Landsec acquired the site in June 2005 and conducted redevelopment in 2016. One New Street Square is fully let to Deloitte, with a 14-year unexpired lease term remaining and a current annual net rent of £16.8 million. With limited opportunities to add further value, the disposal is in line with Landsec’s strategy to recycle capital out of mature London offices.
Advisors
Knight Frank advised Landsec, and Savills advised Chinachem Group.
With its strategic review in late 2020, Landsec announced its intention to sell around £2.5 billion of mature London offices over the medium term. With the inclusion of 1 New Street Square, the company has now sold £2.1 billion of offices, representing an average yield of 4.4%.
21 Moorfields
Landsec completed the sale of 21 Moorfields for £809 million on September 21, 2022. The buyer was an investment vehicle managed by Lendlease.
On May 12, 2022, Landsec sold 32-50 Strand, London, WC2 for £195 million to Sinarmas Land Limited, a real estate company listed on the Singapore Exchange and headquartered in Singapore.
