Evans Randall has appointed CBRE to sell the City headquarters of HBOS at 33 Old Broad Street, EC2, for £250m – a 3.65% yield.
The 192,300 sq ft building is let to HBOS, which was taken over by Lloyds during the financial crisis, for more than 23 years, making it one of the longest leases for a single-let building in the City.
The current passing rent is £47 per sq ft but the lease is subject to five yearly fixed uplifts.
The low-rise building occupies a large site and has the potential for major redevelopment in the long term.
Evans Randall bought the building for £197m – a 4% yield – in 2006 from a joint venture comprising Nick Leslau’s Prestbury, Tom Hunter’s West Coast Capital and Bank of Scotland.
It is the latest in a string of sales by the private equity group, which spent more than £2bn on UK trophy assets in the last cycle including stakes in the Gherkin, EC3; Drapers Gardens, EC2 and 25 North Colonnade, E14.
It has since disposed of the majority of its UK portfolio of large, core assets and has begun focusing on smaller value-add opportunities.
