Hong Kong-listed SEA Holdings has agreed to buy HBOS’ City HQ at 33 Old Broad Street, EC2, from Evans Randall for around £258m.
The group will acquire the Jersey-incorporated company, 33 Old Broad Street Holdings, in which the asset is held.
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 property is leased in its entirety to Bank of Scotland and guaranteed by HBOS for a term until 24 March 2039, with fixed rental uplifts every five years. Based on current information, the group expects the property to generate a rental income of £10.3m per annum.
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.
CBRE advised Evans Randall.
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