Legal & General is selling 28 Cavendish Square for offers in excess of GBP5 million, representing a net initial yield of 4.20 per cent.
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. Major nearby retailers include John Lewis, Debenhams, H&M and Zara.
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. The wider site was sold in 2005 with the purchaser paying GBP425 million, a price thought to reflect its flagship redevelopment potential.
The news follows the recent announcement that L&G is selling Coutts’ headquarters, 440 Strand, which has been brought to the market in isolation for the first time since Coutts & Co took occupation in 1904, as well as 97 New Bond Street.
In addition, L&G is also separately marketing the following properties:
· The Trident Portfolio – a portfolio of three industrial investments in England and Scotland (located in Wakefield, Salford and Rutherglen) totalling 151,649 sq ft. Each asset is used as a vehicle repair workshop, benefitting from large yards and low site cover. Offers are sought in excess of GBP9,150,000, representing a net initial yield of 7.33 per cent
· 2-4 Lower O’Connell Street, Dublin – a prime retail investment in Dublin City Centre comprising two interconnected five storey over basement, period buildings, totalling 12,160 sq ft. The freehold assets are let to Ulster Bank Ireland Limited with an unexpired lease term in excess of 23.50 years. Offers are sought in excess of EUR10,025,000, representing a net initial yield of 5.80 per cent.
· Lee House, Baird Road, Enfield – a secure long-income industrial unit in a sought after Greater London industrial location. The freehold property provides a 47,171 sq ft industrial unit, fitted out as disaster recovery space and is let to The Royal Bank of Scotland Plc with an unexpired lease term in excess of 13.50 years. Offers are being sought in excess of GBP5,915,000, reflecting a net initial yield of 7.00 per cent.
All assets are being marketed by DTZ. L&G acquired the properties 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 GBP550m. The portfolio was acquired on behalf of L&G’s annuity business, L&G Retirement, with help from its shareholder funds, L&G Capital, on behalf of whom these eight assets are now being returned to the market.