Land Securities is in talks to buy one of the largest and most complex redevelopment opportunities in the City.
The UK’s largest REIT is in talks with administrators at Ernst & Young to acquire 21 Moorfields, EC2, the former home of investment bank Lazard.
The site above Moorgate station presents the opportunity for a major development following the completion of Crossrail in 2018. Various schemes of 400,000 sq ft to 630,000 sq ft have been proposed.
E&Y was appointed to site-owner Souzel Properties, a Gibraltar-based, special-purpose vehicle owned by the Gertner family, after Lloyds Banking Group withdrew its support in April 2010.
London Underground owns the freehold of the site, which lies close to the proposed entrance to Liverpool Street Crossrail Station.
The land is bounded by Moorfields, Fore Street Avenue, Moor Lane and New Union Street, and shares a southern border with Telephone Exchange, the site being redeveloped by MGPA, CarVal and Quadrant Estates.
The complex nature of the 21 Moorfields site has seen a range of options considered for its redevelopment.
Hammerson won planning permission for a 422,735 sq ft scheme before selling the long leasehold to the Gertner family in partnership with the Novyon Foundation for £47.7m in 2004.
Moises and Mendi Gertner later won planning for a 627,000 sq ft scheme designed by Foster + Partners, which featured 597,000 sq ft of offices and 29,500 sq ft of shops.
In 2007, the Gertners instructed Savills to sell the site, but failed to achieve a disposal.
A source said: “It is a complicated site with a relatively low capital value entry price, which means it is ideally placed to be exploited using the skills of a major REIT such as LandSec.”
A deal would be among the first significant moves made by new chief executive Rob Noel, hinting at his ambitious approach to the capital.
Noel took over from Francis Salway in April following more than two years managing the REIT’s London portfolio.
The post-Crossrail timing of the opportunity would suit LandSec’s London pipeline, which includes the Walkie Talkie tower at 20 Fenchurch Street, EC3, scheduled for completion in 2014, and the £1bn Victoria Circle redevelopment, scheduled for completion in 2018.
Last week, LandSec placed a knockout bid to secure control of a 3.4-acre prime development site on Piccadilly Circus, W1.
All parties declined to comment.
Jack.sidders@estatesgazette.com
