Legal & General announces that it is selling 440 Strand quoting offers in excess of £168,7 million (approx. €208.6 million), equating to a net initial yield of 4.50%. The property is being marketed by DTZ.
This is the first time that 440 Strand, the headquarters of one of the world’s most exclusive and oldest private banks which counts the Queen amongst its notable clients, has been brought to the market in isolation since Coutts & co took occupation in 1904. Located on the Strand in Covent Garden, the property is situated directly opposite Charing Cross mainline and underground stations. The original building was constructed in the 1830s and formed part of the famous London ‘improvements’ designed by British Regency architect John Nash. The Grade II Listed building was completely renovated in the 1970s and opened by Queen Elizabeth II in 1978.
Legal & General acquired the property earlier this year as part of a portfolio of 55 assets backed by Royal Bank of Scotland which it purchased from Telereal Trillium for a total consideration of £550 million (approx. €680 million). In order to meet the scale of investment required to purchase this rare portfolio on behalf of its annuity business, L&G Retirement, it used combined investment from its shareholder funds, L&G Capital, on behalf of whom this asset is now being returned to the market.
Occupying a 1.29 acre triangular island site, the property provides a total net area of 180,480 ft² (approx. 16,767 m²), including 138,290 ft² (approx. 12,847 m²) of Grade A office, ancillary and banking space and 42,190 ft² (approx. 3,920 m²) of high quality retail and restaurant space. The offices are let to the Royal Bank of Scotland Group plc, on assignment from Coutts & Co, until 17 December 2037, equating to an unexpired lease term in excess of 23.5 years. The thriving retail accommodation comprises 18 units at ground level together with a further five units at concourse level, occupied over 22 tenancies.
Source: Legal & General