Landsec has sold 7 Soho Square property to Hines for a total consideration of €85m (£78m), reflecting strong demand for high-quality office and mixed-use space in central London. The sale price reflects a 4% yield.
7 Soho Square comprised of 62,000ft² of mostly office, plus ancillary retail and other accommodation arranged over the basement, ground and six upper floors, with reconfiguration and reversionary potential. The property is located in one of the most vibrant and popular areas of the West End and benefits from excellent transport access. The building is fully let, with Trip Advisor, the world’s largest travel platform occupying the majority of the office space, and planning consultancy Barton Willmore the other office tenant. The retail element on the basement and ground floor is leased to Tesco.
Marcus Geddes, Head of Property, Landsec, said: “Soho Square has delivered strong returns during our ownership. This sale crystallizes value that the team has created and is in line with Landsec’s strategy of recycling capital into our development pipeline.”
Peter Epping, Senior Managing Director at Hines and Fund Manager for HECF, said: “Soho Square is an iconic landmark and positioned directly opposite the new Tottenham Court Road Elizabeth Line station entrance, it’s one of the West End’s most sought after destinations. Alongside its pinpoint location, the property presents a rare opportunity to over time leverage our value enhancement approach and create a workspace that caters to a new generation of office occupiers in the post-COVID environment.”