British Land (BL) has sold Legal & General House, Kingswood, Surrey, to Kingswood Property Holdings, for around £73.6m.
The sale price, above book value, reflects an initial yield to the purchasers of 3.9%, rising to 5.62% in April 2008.
The purchase of the 259,000 sq ft office block , located on a 43-acre site within five miles of Junction 8 of the M25, was made with funding from The Royal Bank of Scotland.
Legal & General Assurance Society let the entire property for a 20-year term from August 2005 with five yearly rent reviews.
Bob Bowden, British Land’s Property Investment Director, commented: “The sale follows on from our successful regear of the lease with Legal & General.
“This has created an investment of bond-like characteristics and allowed the opportunity to take advantage of the very strong investment market to realise an exceptional sale price and recycle capital into projects with better prospects going forward”.
Colliers CRE and Smee Associates acted for the vendor, advised by Nabarro Nathanson.
DTZ Debenhams Tie Leung represented the purchaser, with legal advice from Clifford Chance LLP.
References: EGi News 17/01/06
