27th Jan 2023 12:18
(Alliance News) - Land Securities Group PLC on Friday announced the sale of central London-located One New Street Square to Hong Kong-based Chinachem Group, a property developer that has a real estate portfolio value of around USD13.7 billion.
Land Securities, a London-based commercial property developer and investor, said the GBP349.5 million sale of the 276,502 square foot property "crystallises" a total return on capital averaging 10% per year since it bought the site in June 2005, and re-developed it in 2016.
The square is fully let to professional services firm Deloitte Touche Tohmatsu Ltd, with a 14-year unexpired lease term remaining, for a current annual net rent of GBP16.8 million.
"With limited opportunities to add further value, the disposal is in line with Landsec's strategy to recycle capital out of mature London offices," the company said.
Land Securities Managing Director Central London, Marcus Geddes, said: "Through this sale we have been able to unlock capital at a rate that has provided strong returns over our 18 years of ownership. Crystallising these returns enables us to turn towards future opportunities and future growth through balance sheet strength and flexibility."
Land Securities shares were 0.7% higher at 706.60 pence each in London on Friday afternoon.
By Tom Budszus, Alliance News reporter
Comments and questions to [email protected]
Copyright 2023 Alliance News Ltd. All Rights Reserved.