(Alliance News) - Land Securities Group PLC on Monday said it has acquired a 10-storey building at 55 Old Broad Street in central London from PGIM Real Estate.
The London-based commercial property development and investment company said the acquisition was for GBP87 million and a net initial yield of 4.1%, topped up to 5.8%.
The 55 Old Broad Street property is a 100,000 square foot, 10-storey office building which is currently 87% let.
LansSec said the deal has exchanged on an unconditional basis and is expected to complete in January.
Nick de Mestre, head of investment at Landsec, said: "55 Old Broad Street is a well-located asset in the heart of London. The development potential of this asset, combined with the potential for Dashwood, offers Landsec the opportunity to deliver a compelling, best-in-class destination over the medium term. This acquisition demonstrates our commitment to optimising our central London portfolio through the reinvestment of capital, as set out in our strategy."
LandSec shares were down 4.2% at 695.05 pence each in London on Monday morning.
By Greg Roxburgh; gregroxburgh@alliancenews.com
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