Land Securities Group PLC has completed the sale of its Fleet Street Estate to the City of London Corporation for £74 million (approx. 76 mln.). The Fleet Street Estate comprises eight adjoining self-contained buildings which provide an aggregate lettable floor area of 200,512 ft² (18,628 m²).
Land Securities' Fleet Street Estate sale comprises eight adjoining buildings.
The freehold site occupies a prime position in the heart of London's Midtown district. The Estate is bounded by Fleet Street to the north, Whitefriars Street to the west, Salisbury Square and Salisbury Court to the east and the Harrow public house and Primrose Hill to the south. A substantial part of the site is occupied by the Office of Fair Trading. Ownership is being transferred to the City in three tranches.
Richard Linnell, Head of Investment Management in Land Securities' London Portfolio, said: "We have assembled this site around the Headquarters of the OFT, and have added value with the recent extension of the OFT lease. We believe that the capital released by this sale will work better for us by generating outperformance in other areas than through redeveloping this particular site."
Sheriff George Gillon, Chairman of the City of London's Property sub Committee said: "This is a significant strategic purchase for the City of London Corporation and shows the City's confidence in the long term prospects for City property. Long term income secured against a Government covenant is also attractive at this time of declining interest rates."
The City Surveyor and Drivers Jonas advised the City, and Land Securities were represented by BH2.
Source: Land Securities