Land Securities announces that it has completed the purchase of the head leasehold of Arundel Great Court, Strand, London WC2 from an overseas private owner for a total consideration of approximately €420 million (£306.0 million), representing an initial yield of just under 5.0%.
The majority of the office buildings, 370,000 ft² (34,374 m²) are let to Deloitte & Touche until 2019, although they have an option to assign the leases to Land Securities upon taking 2 and 3 New Street Square, 254,664 ft² (23,659 m²), Land Securities' scheme in Mid-Town. The property includes the 189-bed Swissotel Howard Hotel adjacent to Temple Underground Station.
Richard Linnell, Head of Investment Management for Land Securities' London Portfolio, commented: "We are very pleased to have acquired the head leases at Arundel Great Court. This is a major and prominent site on both the Strand and from the river. We believe this part of Mid-Town has very good prospects for rental growth and this is a significant site for a possible major redevelopment in the longer term. Overall we expect that the property will provide very good performance in the future."
Land Securities was advised by Jones Lang LaSalle and CB Richard Ellis advised the vendor.
Source: Land Securities