Land Securities has agreed to sell Bankside 2 & 3, SE1, and its retail holdings in Bankside 1, to M&G Real Estate Limited for £315 million (approx. €371.6 million), reflecting a net initial yield of 5.2%.
Land Securities’ 2007 redevelopment of the Bankside complex, situated adjacent to the Tate Modern, rejuvenated a significant area of the South Bank into a vibrant office and retail hub. Bankside comprises three striking buildings, totalling 915,000 ft² (approx. 85,000 m²) of grade A offices and retail, as well as public space. The office element of Bankside 1, the Blue Fin Building, was sold to IPC Magazines Group PLC for their own occupation, while the adjacent 1.75 acre site was sold to a joint venture between Grosvenor and Native Land for the development of 217 residential units which now form the Neo Bankside scheme.
Bankside 2 & 3 comprise more than 380,000 ft² (approx. 35,300 m²) of office accommodation let to Royal Bank of Scotland until 2027. The sale to M&G Real Estate includes 73,000 ft² (approx. 6,781 m²) of retail space let to several retailers.
Scott Parsons, Head of London Property at Land Securities, said: “With our expertise and passion for place-making, Land Securities’ Bankside development in 2007 provided the catalyst for the transformation of this part of the South Bank. Bankside has produced strong, double-digit returns for us since we started on site in 2003, and selling it now fits our strategy of recycling capital to re-invest in other transformational opportunities within the Group’s development pipeline.’
Knight Frank acted on behalf of Land Securities and Jones Lang LaSalle advised M&G Real Estate.
Source: Land Securities