McKay Securities has exchanged contracts to sell the long leasehold interest in 30 Lombard Street, a prime office building located in the heart of the City of London for €90.2m (£76.5m). The redevelopment of 30 Lombard Street was completed in early 2019. Providing 58,500ft² over 11 floors, the BREEAM ‘Excellent’ building was pre-let shortly before completion to FTSE 100 wealth manager, St. James's Place plc on a 15-year lease until 2034 (without breaks) securing a net rent of €4m (£3.4m) pa. Together with its core City location, it offers outstanding column-free office space and excellent natural light, with a substantial roof terrace.
McKay acquired the long leasehold interest of the site in 1999 with a multi-let 36,000ft² 1960’s office building generating rental income of €1.3m (£1.1m) pa. Income was retained from the building while planning consent was achieved for the current scheme, securing a 62% increase in lettable area. McKay’s successful capital raising in 2014 facilitated the speculative redevelopment of the property, resulting in the generation of shareholder value and the enhancement of this historic City location with a building of the highest quality.
