Land Securities (LandSec) has acquired two London offices for £110.7m.
The developer has expanded its holdings in Southwark with the purchase of Red Lion Court, SE1, from Canadian investor Jesta Corporation for about £67m.
The 128,324 sq ft office building is let to Lloyds TSB and currently produces £4.3m pa, reflecting an initial yield of 6.4%.
LandSec is already developing Bankside1 in Southwark on behalf of IPC Media and has planning consent for a further two buildings on the Bankside123 scheme adjacent to Tate Modern.
Plans for a residential development on a site nearby are also being prepared and LandSec will be developing some affordable housing at 20 Blackfriars Street.
Mike Hussey, managing director of LandSec’s London Portfolio, said: “Red Lion Court provides stable and improving income off a sensible rental base of £34 per sq ft and will benefit from our own and others’ considerable investment into the Bankside area.”
LandSec also announced today that it has purchased City fringe business park City Forum from Leo Noé’s REIT Asset Management for £43.7m. The deal reflects a 6.5% yield.
As reported by Estates Gazette in November, LandSec was bidding against developers including Great Portland Estates, Helical Bar and Delancey for the 131,640 ft scheme on City Road, EC1.
The park comprises 13 buildings and occupiers include Goldman Sachs, Deloitte & Touche LLP, NatWest and the London Fire Brigade.
Hussey said he would submit a new planning application for the scheme with a significant residential component.
A planning consent for an office development in the centre of the site is already in place.
On the City Forum transaction, Jones Lang LaSalle acted for Land Securities and Franc Warwick acted for REIT Asset Management.
On the Red Lion Court acquisition, FPD Savills acted for the Jesta Corporation and Strutt & Parker acted for Land Securities.
References: EGi News 05/01/05
