L&G sells prime London office scheme
LGIM Real Assets (L&G) has sold prime London office scheme, Procession House, a 105,944sq ft office and retail site, which occupies a prominent island within the City of London.
The property has been sold on behalf of Legal & General’s Managed Property Fund to Goldman Sachs’ real estate principal investing group in a joint venture with Greycoat.
Situated on Ludgate Circus, Procession House is let to four tenants on full repairing and insuring leases. The office portion of the site, the large majority of the scheme, is currently leased to Goldman Sachs International until September 2024, subject to a break option in September 2019. Other occupants include The Co-operative, TM Lewin & Sons and Elvetham Ltd.
The sale supports the Fund’s wider strategy to move towards income generating investments.
Planning permission for the site was granted in Q4 2017 for a John Robertson Architects-designed refurbishment which includes an extension of the existing building.
Savills acted on behalf of the seller Legal & General with Cushman & Wakefield acting on behalf of the purchaser.
Mark Russell, Senior Fund Manager of the Managed Property Fund, says: “Procession House, which we acquired in April 2014, is a well located office scheme in the heart of the City of London. It is in an area which is set to benefit from the Crossrail effect, attracting a diverse range of occupiers. Having obtained the relevant consents to reposition the asset and with the potential vacation of Goldman Sachs in September 2019, this sale represents an opportune exit for the Fund which will allow a redeployment of capital into income producing stocks, in line with our strategy.”