Goldman Sachs’ former office at Procession House, EC4, is being marketed for more than £67.5m by LGIM Real Assets, on behalf of its managed fund.
Savills has been instructed to sell the long leasehold of the 105,944 sq ft office building at 55 Ludgate Hill. The asking price reflects a net initial yield of 6.15% and a capital value of £637 per sq ft.
Goldman Sachs has vacated the eight-storey building but rents the entire office accommodation on a lease expiring in 2024, with a tenant-only break option in September 2019.
The investment bank is due to consolidate its London offices into its new 840,000 sq ft London HQ at 40 Shoe Lane, EC4, in 2019, and has instructed CBRE to advise on a potential £1bn sale and leaseback of the building.
Owned freehold by the City of London Corporation, the building is held long leasehold for a further 131 years geared to 5% of rents receivable, subject to a minimum ground rent. The current passing rent for offices is £4m pa, which reflects a low average of £40.50 per sq ft overall.
The retail units, which total just under 7,000 sq ft, are let to Co-operative Group Food, T.M. Lewin & Sons and Elvetham, with a vendor guarantee on the vacant retail unit, providing for an average weighted unexpired lease term on the let units of 12.5 years to expiries and 9.4 years to breaks. The passing rent on the retail accommodation is £441,200 pa.
L&G was granted planning consent in November 2017 for a John Robertson Architects-designed scheme to create a new headquarters via a comprehensive refurbishment and extension.
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