Land Securities has sold one of its major Victoria properties, Eland House, to Tishman Speyer for around £170m.
The REIT secured an off-market sale of the 253,000 sq ft building located at Bressenden Place, SW1, for a yield of around 7%.
The building, which is occupied by the Department for Communities and Local Government, is located close to LandSec’s Cardinal Place scheme and opposite its proposed Victoria Circle development.
Process from the sale will be recycled into “other opportunities within the portfolio”.
The building is let to the government until 2021 with a tenants break clause in 2016 at a rent of £12.35m pa.
It is the second purchase in Victoria for the US investor which last year paid around £175m to buy the 227,000 sq ft Sanctuary Buildings from Irish property company Vico Capital.
Robert Noel, managing director of LandSec’s London portfolio, said: “Eland House does not form part of our ambitious masterplan for Victoria. The proceeds from the sale will be recycled into other opportunities within the portfolio.”
Julian Stocks, managing director, UK Tishman Speyer, said: “We are delighted with this latest addition to our London portfolio which follows recent purchases in Frankfurt and Paris.
“Eland House is a grade-A office building in a great location which will improve further as Land Securities develop their Victoria Circle scheme”.
CBRE acted for Land Securities; Jones Lang LaSalle advised Tishman Speyer.
bridget.o’connell@estatesgazette.com
