Legal & General is to take ownership of Nestlé’s 24-storey St George’s House in Croydon as part of a deal that will see the food giant move to a site near Gatwick, Surrey.
Nestlé has agreed a 20-year lease at L&G’s 1 City Place at a starting rent of £22.50 per sq ft with annual RPI uplifts.
L&G’s UK Property Income Fund bought the 130,800 sq ft Crawley site before Christmas from RREEF for £39m – a yield of 7.75% – and completed the surrender of BT’s existing lease on the property.
CBRE acted for Nestlé; all other parties were unrepresented.
nick.whitten@estatesgazette.com
