M&G Real Estate has acquired Bankside 2 & 3, SE1 and the retail holdings of Bankside 1 for GBP315m from Land Securities Group, representing an initial yield of 5.2 per cent.
Situated in the heart of Southbank next to the world renowned Tate Modern Gallery, Bankside 1, 2 & 3 comprise 380,000 sq ft of office accommodation let entirely to The Royal Bank of Scotland until 2027 and 73,000 sq ft of retail space let to several retailers, including Marks & Spencer, WH Smith, Pret a Manger and Starbucks. The offices at Bankside 1 are excluded from the purchase.
Running from Shad Thames in the east and encompassing London Bridge, Southwark and Waterloo, Southbank is now one of the most popular business locations in London. Thanks to significant development and refurbishment over the last 15 years, it offers new and refurbished buildings, local attractions and excellent transport links.
Chris Perkins, head of business space at M&G Real Estate, says: “Bankside 1, 2 & 3 is another significant investment by M&G Real Estate, providing a strong mix of value and secure income in a location that continues to benefit from major repositioning of the South Bank within the London office hierarchy. Our funds have now invested in excess of GBP1.1bn across London and the South East and regions in 2013. We continue to have substantial capital sums available for direct and joint venture acquisitions into high quality property in all sectors across the UK.”
M&G Real Estate was advised by Jones Lang LaSalle. Knight Frank acted on behalf of Land Securities.