Asian fund buys office properties from Land Securities

Land Securities confirmed on Friday that it has exchanged contracts for the freehold sale of two office buildings in London to an Asian fund investor for £50.5 mln (almost EUR 58 mln).

As reported earlier by PropertyEU, Deutsche Pfandbriefbank provided a medium-term loan facility of over £32 mln to the fund for the purchase of 40/50 Eastbourne Terrace.

The two office buildings date from 1960. 40 Eastbourne Terrace, is a 7,711 m2, grade A building which was fully refurbished in 2006. It is fully let to CB&I until 2016 at a total rent of just over £2.9 mln per annum. Land Securities said the building's environmental credentials include geo-thermal cooling. 50 Eastbourne Terrace provides just over 5,570 m² in three blocks of older multi-let office and retail accommodation let on shorter leases at a total rent of £1.7 mln per annum.

Richard Linnell, head of Investment Management for Land Securities' London portfolio, said: 'We are seeing improving investor interest and the funds raised from the sale further increase our flexibility to take advantage of new development and investment opportunities as the cycle turns.'

Strutt & Parker advised Land Securities and Hoffman Partners advised the purchaser.