Land Securities is poised to make its first office investment in London’s Docklands.
The UK’s largest listed property company is in detailed negotiations to buy the 260,000 sq ft Equitable Life buildings on Harbour Exchange, E14.
LandSec has been in negotiations with Insight Investment Management, which advises Equitable Life, to pay around £80m, a 6.5% yield, for 6-7 Harbour Exchange and 8-9 Harbour Exchange, E14.
“LandSec sees the area as a growth story and will look at buildings that have a sensible rent,” said a source. “Docklands also offers risk diversification, as it normally follows a different cycle to the City and West End.”
Tenants include the Bank of New York, Telecity and Redbus Interhouse. The average rent is £19 per sq ft, with many of the leases expiring in 2013.
LandSec has been looking to expand its office portfolio into Dockland for some time, and has even considered Canary Wharf buildings over the past year. Jones Lang LaSalle advised Insight.
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Canary Wharf is expected to see an increase in letting and investment activity in the next few weeks. Insurer Aon is believed to be favouring a move from its City home to a new purpose-built building at Canary Wharf. CB Richard Ellis is advising. And CBRE has also won the pitch to advise Credit Suisse First Boston on the bank’s property strategy. CSFB may consider a £500m-plus sale and leaseback of its estate. CSFB owns the 540,000 sq ft 1 Cabot Square and the 167,000 sq ft 20 Columbus Courtyard, E14. |
