The German open-ended fund, Deka, is reportedly looking to sell the famous headquarters of Lloyds of London for around ÃÂ£240m. Deka bought the 375,000 sq ft building, at 1 Lime Street, EC3, for ÃÂ£180m back in 1996. The current mooted ÃÂ£240m price tag would reflect a net initial yield of 6.75%. Deka is being advised by CB Richard Ellis and FPDSavills.
The Lloyds HQ is one of several major City office buildings due to come onto the market over the next few months. Scottish Widows has already put ING BaringÃ¢â¬â¢s 50 London Wall, EC2, back on the market after a deal with CGI, which was looking to buy the 240,000 sq ft building for ÃÂ£180m, collapsed last March. The building now has a price tag of ÃÂ£165m.
Meanwhile, a joint venture between British Land and WestLB is trying to sell two properties from its four-building City portfolio. The 160,000 sq ft 100 New Bridge Street, EC4, is being marketed through DTZ for over ÃÂ£110m. The property is currently let to the solicitor, Baker & McKenzie. The joint venture is also selling its multi-let 95,000 sq ft Watling House, 33 Cannon St, EX4, for ÃÂ£60m.
Colin Wilson, Head of City Investment at DTZ, commented: Ã¢â¬ÅOne might have thought the recent jump in the cost of money would have created obstacles, but there is such an appetite for good investment product that demand is just pushing on. This year is going to see an unprecedented cash call on banks for people looking for debt.Ã¢â¬Â