Landsec has sold 6-9 Harbour Exchange, E14, to Blackstone for £196.5m.
The sale to the US giant’s European Property Income Fund demonstrates the strength of investors’ appetite for central London, reflecting a net initial yield of just 3.99%.
The 278,198 sq ft Harbour Exchange comprises two adjoining repurposed office buildings, originally constructed in 1989, which lie directly to the south of Canary Wharf. It is let as a data centre and office accommodation to Equinix, with an unexpired lease term of nearly 20 years.
The sale is in line with Landsec’s strategy, set out in October 2020, to offload assets that are not focused on its three key areas: central London offices, major retail destinations and urban mixed-use neighbourhoods in London and other major regional cities.
Marcus Geddes, managing director central London at Landsec, said: “The sale of Harbour Exchange is very much aligned with our strategy. Through this disposal we are recycling capital into opportunities where we can bring to bear Landsec’s skills and expertise to drive growth and returns for our investors.”
The sale is the latest in a number of steps Landsec has taken in recent months to support its growth strategy, including the purchase of a majority stake in MediaCity in Salford.
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