10th Oct 2013 08:30
LONDON (Alliance News) - Land Securities Group PLC Thursday said it had sold properties in the Bankside development at the back of the Tate Modern in London to M&G Real Estate Ltd for GBP315 million, giving it a net initial yield of 5.2%.
The Bankside development of residential apartments, shops and restaurants has transformed an otherwise run-down area on the south bank of the river Thames in Southwark. It is part of a broader regeneration of the area, which is also linking up with redevelopments at London Bridge to the east and Waterloo to the west.
Land Securities said the latest sale includes the Bankside 2 and 3 blocks, and its retail holdings in Bankside 1. It had previously sold its office holdings in Bankside 1, known as the Blue Fin building, to IPC Magazines Group.
"Bankside has produced strong, double-digit returns for us since we started on site in 2003, and selling it now fits our strategy of recycling capital to re-invest in other transformational opportunities within the group's development pipeline," Land Securities Head of London Property Scott Parsons said in a statement.
Land Securities shares were up 1.2% at 927 pence Thursday morning.
By Steve McGrath; [email protected]; @stevemcgrath1
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