British Land sells property in London for approx. €152 million (UK)

The British Land Company PLC has disposed of 133 Houndsditch in the City of London to the Henderson Central London Office Fund for €152 million (£110 million). The net initial yield is 4.0% and reversionary yield is 6.5%.

113 Houndsditch, London.

The Houndsditch site extends to an area of 1.02 acres with office, retail and ancillary accommodation accounting for 210,046 ft². Income receivable from the property, which is 60% occupied, totals approximately €6 million (£4.5 million) per annum.

Bob Bowden, Property Investment Director, British Land said: "The sale has delivered a strong investment price for us and is at a premium to the March 2006 book value. It reflects our on-going programme to reshape the portfolio and recycle capital into other projects, particularly developments, which have better prospects for enhanced returns."

Commenting on the deal, Clive Castle, Fund Manger of Henderson's Central London Office Fund said: "The property offers the Fund significant exposure to the City market which we believe will continue to strengthen in the short to medium term, driven by a limited supply of good quality floorplates and healthy tenant demand. The Fund will undertake a major refurbishment of the building including 80,000 ft² of floorspace over the coming year."

British Land was advised by DTZ on the Houndsditch sale. Henderson was advised by Nelson Bakewell.

Source: British Land
Source image: Henderson

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