Land Securities has exchanged contracts for the freehold sale of 40/50 Eastbourne Terrace, a partially refurbished office investment in Paddington, London W2, to a Far Eastern fund purchaser for £50.5 million (approx. 57.5 mln.). The properties consist of two office buildings originally constructed in 1960.
40 Eastbourne Terrace has strong environmental credentials, including geo-thermal cooling.
40 Eastbourne Terrace, is a 83,000 ft² (7,711 m²) grade A building refurbished back to the frame in 2006 with strong environmental credentials including geo-thermal cooling, fully let to CB&I until 2016 at a total rent of just over £2.9 million pa. 50 Eastbourne Terrace provides just over 60,000 ft² (5,574 m²) in three blocks of older multi-let office and retail accommodation let on shorter leases at a total rent of £1.7 million pa.
Commenting on the sale, Richard Linnell, Head of Investment Management for Land Securities' London Portfolio, said: "We are seeing improving investor interest and the funds raised from the sale further increase our flexibility to take advantage of new development and investment opportunities as the cycle turns."
Funding for the purchase was secured from Deutsche Pfandbriefbank AG by way of a medium term loan facility of over £32 million. The financing represents new debt for a new client of the bank.
Harin Thaker, Head of Real Estate Business International at Deutsche Pfandbriefbank commented: "The Group´s strategic core bank is originating and doing new business in core markets. We are delighted to welcome this new client to the bank and look forward to a long and successful relationship. This deal demonstrates our willingness to take on new clients selectively for the right deals and shows continued flexibility in our business model."
Strutt & Parker advised Land Securities and Hoffman Partners advised the purchaser.
Source: Land Securities