23rd Dec 2019 13:16
(Alliance News) - McKay Securities PLC said Monday it has agreed to sell the long leasehold interest in 30 Lombard Street, "a prime office building located in the heart of the City of London", for GBP76.5 million.
The real estate investment trust said the sale price of the recently redeveloped office building reflects a net initial yield of 4.16% on a topped-up basis and a capital value of GBP1,308 per square feet. Its 58,500 square feet over 11 floors is let for 15 years to wealth manager St James Place PLC at a net rent of GBP3.4 million per annum.
When the building was acquired by McKay Securities in 1999, and before redevelopment, it had only 36,000 square feet of space and generated rental income of just GBP1.1 million per annum.
"On completion the sale, proceeds will initially be used to pay down debt, prior to re-investment in new acquisitions and portfolio opportunities," the company said.
Mckay Securities shares were down 1.1% in London at 272.00 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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