McKay sells City of London office for £76.5m

McKay sells City of London office for £76.5m

McKay Securities has sold a prime City of London office for £76.5m.

The REIT, which is focused on the London and South East office and industrial markets, has disposed of 30 Lombard Street at a net initial yield of 4.16%.

McKay, which completed the redevelopment of the 58,500 sq ft building in early 2019, pre-let the office space to FTSE 100 wealth manager St James’s Place on a 15-year lease at an annual rent of £3.4m (£65/sq ft).

McKay acquired the long leasehold interest of the site in 1999 when it was a  36,000 sq ft, 1960’s-built office block that generated £1.1m a year in rent. McKay speculatively redeveloped the building with funds from a capital raising in 2014 and increased the lettable space by 62%.

On completion the sale, which is subject to the satisfaction of certain conditions relating to highways matters with an estimated timescale of around three months, the proceeds will initially be used to pay down debt, prior to re-investment in new acquisitions and portfolio opportunities.

MCKS : McKay sells City of London office for £76.5m

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