Legal & General is selling Coutts’ headquarters, 440 Strand, quoting offers in excess of GBP168,700,000, equating to a net initial yield of 4.50 per cent.
The property is being marketed by DTZ.
This is the first time that 440 Strand, the headquarters of one of the world’s most exclusive and oldest private banks, has been brought to the market in isolation since Coutts & co took occupation in 1904.
Located on the Strand in Covent Garden, the property is situated directly opposite Charing Cross mainline and underground stations.
The original building was constructed in the 1830s and formed part of the famous London ‘improvements’ designed by British Regency architect John Nash. The Grade II Listed building was completely renovated in the 1970s and opened by Queen Elizabeth II in 1978.
Legal & General acquired the property earlier this year as part of a portfolio of 55 assets backed by Royal Bank of Scotland which it purchased from Telereal Trillium for a total consideration of GBP550 million. In order to meet the scale of investment required to purchase this rare portfolio on behalf of its annuity business, L&G Retirement, it used combined investment from its shareholder funds, L&G Capital, on behalf of whom this asset is now being returned to the market.
Occupying a 1.29 acre triangular island site, the property provides a total net area of 180,480 sq ft, including 138,290 sq ft of Grade A office, ancillary and banking space and 42,190 sq ft of high quality retail and restaurant space. The offices are let to the Royal Bank of Scotland Group, on assignment from Coutts & Co, until 17 December 2037, equating to an unexpired lease term in excess of 23.5 years. The retail accommodation comprises 18 units at ground level together with a further five units at concourse level, occupied over 22 tenancies.