Legal & General Property’s UK Property Income Fund has confirmed its acquisition of 1 City Place in Gatwick from RREEF for £39m.
At the same time, LGP has completed the surrender of BT’s lease on the property and simultaneously agreed a new 20-year lease with Nestlé at around £20 per sq ft.
The 1 City Place scheme comprises a 130,800 sq ft headquarters office building arranged over a ground floor and three uppers. The building, which was fully let to BT until 23 May 2017, had not been occupied for some time.
The fund will refurbish the building to make it ready for Nestlé, which will remain in occupation at St George’s House in Croydon while works are undertaken.
Charlie Walker, fund manager of the UK Property Income Fund, said: “The simultaneous nature of the transaction, against a challenging timetable, is a substantial achievement and served to de-risk the investment for the fund.
“The Gatwick transaction delivers a highly attractive indexed-lease profile secured against a strong, international covenant and will be a great addition to the fund at this stage of its investment period.”
annabel.dixon@estatesgazette.com
