L&G sells 28 Cavendish Square to Lancer
Legal & General Property has sold the short leasehold interest in No28 Cavendish Square to its freeholder, Lancer, for a total consideration of GBP5.35 million, representing a net initial yield of 3.7 per cent.
Forming a key corner piece of the Cavendish Island site, which stretches from Cavendish Square to Oxford Street and incorporates over 200,000 sq ft of offices, the BHS department store, nine Oxford Street shops and the London College of Fashion, the asset offers a major medium term development opportunity as part of the potential regeneration of the entire site. L
ancer acquired the wider site in 2005, with the exception of 28 Cavendish Square and BHS, paying c.GBP425 million.
The property is situated on the southern stretch of Cavendish Square in a prominent position at the junction where Holles Street, which runs 100m from Oxford Street, meets Cavendish Square. The unit, which is let to the Royal Bank of Scotland until 2037, providing 23 years unexpired lease term, comprises 6,845 sq ft arranged as a banking hall and offices at basement, ground and mezzanine level.
One of the standout deals of Q1 2014, the property formed part of LGP’s March purchase of a portfolio of 55 assets backed by RBS from Telereal Trillium for a total consideration of GBP550 million.
Signifying one of the largest portfolio acquisitions to be successfully undertaken by a UK fund in recent years, the deal represented a rare opportunity to acquire RBS’s flagship buildings, with a prime portfolio let to RBS on lease terms predominantly over 23 years with RPI linked reviews, representing a net initial yield of five per cent.
The news follows the recent announcement that L&G has sold Coutts’ headquarters, 440 Strand, to Henderson UK Property Unit Trust for GBP175 million, representing a net initial yield of 4.34 per cent.
It has also sold 97 New Bond Street to Wittington Investments for a total consideration of GBP18,750,000, representing a net initial yield of 2.3 per cent; 2-4 Lower O’Connell Street, Dublin – a prime retail investment in Dublin City Centre, to a private investor for EUR11,437,000 reflecting 5.08 per cent; and the Trident Portfolio to Direct Line for GBP10,400,000 reflecting 5.99 per cent.
Finally, it has sold Lee House, Baird Road, Enfield – a 47,171 sq ft industrial unit, fitted out as disaster recovery space – to Aviva Investors for GBP6,132,000, reflecting a net initial yield of 6.75 per cent.
- By Category
- News from other sites
- Special Reports
- Partner events