Land Securities buys City development opportunity for £87m

Land Securities has acquired a City of London office building for £87m, reflecting a net initial yield of 4.1%.

The company has bought 55 Old Broad Street, EC2, which comprises 100,000 sq ft, from PGIM Real Estate. The 10-storey building wraps around Land Securities’ City office tower Dashwood and is located a two minute walk from Liverpool Street station. The building is 87% let to businesses including Ecom Agrotrade, GB Rail Freight and Barclays.

The group said the office along with the adjoining Dashwood presents it with a large development opportunity.

Nick de Mestre, head of investment at Land Securities, 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.”

The deal has exchanged on an unconditional basis and is expected to complete in January.

LAND : Land Securities buys City development opportunity for £87m

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