Land Securities announced that it has acquired a 44.5% stake in Times Square, Queen Victoria Street, London, EC4 for Â£95 m from Louis Dreyfus reflecting a net reversionary yield of around 6%.
The 378,000 ft2 (35,117 mÂ²) office building was developed in a joint venture between Louis Dreyfus Property Group and Sableknight in 2003. Mellon Bank has a 20-year lease, from September 2003, of 232,000 ftÂ² (21,553 mÂ²) of offices at a rent on the best space of Â£46.00 psf. Law firm Dechert has just signed an agreement to take a 10-year lease over 55,000 ftÂ² (5,110 mÂ²) of accommodation at an initial rent of Â£35.00psf. Approximately 91,000 ftÂ² (8,454 mÂ²) remains vacant.
Mike Hussey, Managing Director, London Portfolio at Land Securities, said: âThe stake in Times Square provides us with exposure to a prime City asset which will enjoy strong rental and capital value growth. We believe occupiers will respond well to the available space in the building and this area around Blackfriars Station is set to improve considerably over the duration of this investment.â
Strutt and Parker acted for Land Securities with Cushman & Wakefield Healey & Baker acting on behalf of Louis Dreyfus.
New headquarters for 3i
Land Securities Group PLC has also announced that it has exchanged contracts with 3i for the letting of their new headquarters at 16 Palace Street, part of the Cardinal Place development in SW1.
3i will occupy 60,000 sq ft over part ground, first, second and third floors upon relocating from its current head quarters in Waterloo and is the biggest transaction in the West End for the first quarter of 2005. The office letting is the first in the Cardinal Place mixed-use development and comes two months after 16 Palace Street was completed.
Mike Hussey, Land Securitiesâ Managing Director, London Portfolio added " 3i decision to commit to 16 Palace Street over other buildings across Central London is a strong endorsement of the work being carried out by Land Securities to create one of London's high quality managed estates as well as endorsing Victoria as a corporate headquarter location. We are delighted to welcome 3i."
The 3i letting leaves approximately 40,000 sq ft available in the building, part of the ground floor and the 4th and 5th floors. The remainder of the Cardinal Place development, approximately 470,000 sq ft of office and 100,000 sq ft of retail and restaurant space, will be completed in the Autumn of this year.
Jones Lang LaSalle and CBRE advised Land Securities. Colliers CRE advised 3i.
Source: Land Securities