Land Securities has announced that it has exchanged contracts for the freehold purchase of Ashdown House, Victoria Street, London SW1 for £164.2 million, representing an initial yield of 5.8%.
The 21,000 m² (227,000 ft²) office and retail property, purchased from Golfrate, holds a prominent position in Victoria and is fully let to the Government (DEFRA HQ) until June 2017. The ground floor retail holds various tenants including Dixons and Boots.
Mike Hussey, Managing Director, London Portfolio at Land Securities, commented: "The purchase of Ashdown House fits with Land Securities' strategic concentration of assets in Victoria Street and focus on SW1 as a key London gateway. We believe the property will benefit from rental and capital value growth following the completion of the Cardinal Place development and other subsequent Victoria schemes."
The purchase of Ashdown House further consolidates Land Securities holdings in the area and follows the recently submitted outline master plan in response to the Westminster City Council planning brief for the area surrounding Victoria Station. The response includes circa 2.3 million ft² of development incorporating office, retail, leisure and residential accommodation and creation of a world-class transport interchange.
Land Securities was advised by Franc Warwick.
Source: Land Securities