Land Securities Group PLC has exchanged contracts with Blackstone/JER Partners/Resolution for the acquisition of Greater London House, NW1 for approximately £113 million, to show an initial yield of 6.8%. The 30,907 m2 (332,678 ft2) freehold office building currently provides a total gross rental income in excess of £7.79 million per annum.
Constructed in the 1920’s, the property underwent an extensive refurbishment in 1999 and now provides modern office accommodation over ground and six upper floors and some of the largest floor plates in the West End. Within a prominent location in what is now an important technology and media destination, the property benefits from strong tenants including Young & Rubicam Holdings and Bertelsmann Books and Magazines.
Commenting on the purchase, Francis Salway, Group Chief Executive of Land Securities, said:
“This purchase is consistent with Land Securities’ strategy of focusing on London office investments with the potential for future income growth. Currently let at low rentals, averaging just over £23.00 per sq ft, Greater London House offers extremely good opportunities for rental growth as the London office market recovers.”
Land Securities was advised on the purchase by Jones Lang Lasalle and Nabarro Nathanson. Blackstone/JER Partners/Resolution were advised by Franc Warwick and Clifford Chance.
Source: Land Securities