Land Securities has sold one of its major Victoria properties to Tishman Speyer for £170m.
The REIT secured an off-market sale of the 253,000 sq ft Eland House in Bressenden Place, SW1, for a yield of around 7%.
The building, which is occupied by the department for Communities and Local Government, is located close to LandSec’s Cardinal Place scheme and opposite its proposed Victoria Circle development.
Proceeds from the sale will be recycled into “other opportunities within the portfolio”.
The building is let to the government until 2021 with a tenant’s break clause in 2016 at a rent of £12.3m pa.
It is the second purchase in Victoria for the US investor, which last year paid Irish property company Vico Capital around £175m for the 227,000 sq ft Sanctuary Buildings.
Robert Noel, managing director of LandSec’s London portfolio, said: “Eland House does not form part of our ambitious masterplan for Victoria. The proceeds from the sale will be recycled into other opportunities within the portfolio.”
Tishman Speyer UK managing director Julian Stocks said: “Eland House is a grade-A office building in a great location which will improve further as Land Securities develops its Victoria Circle scheme.”
CBRE acted for LandSec; Jones Lang LaSalle advised Tishman.
bridget.oconnell@estatesgazette.com
