Landsec has sold a London office block let to accountancy firm Deloitte to Hong Kong’s Chinachem Group for £349.5m.
The sale of 1 New Street Square, EC4, represents a 3.6% drop from the building’s September 2022 valuation of £362.8m, and gives the FTSE 100 REIT a total return on capital averaging 10% per annum over its 17-year ownership.
The deal means Landsec has now sold £2.1bn of London offices since announcing in late 2020 that it would target £2.5bn of such disposals. The sales to date represent an average yield of 4.4%.
Deloitte leases the entirety of the 276,502 sq ft building, with a 14-year unexpired lease term and a current annual rent of £16.8m.
Landsec bought the site in June 2005 and redeveloped the block in 2016. The company said there are now “limited opportunities to add further value”. It will use the sale proceeds to repay debt.
Knight Frank advised Landsec. Savills advised Chinachem Group.
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