Land Secs buys London plot for new office development

UK REIT Land Securities has agreed to purchase the leasehold interest in a 1.9 acre site at London's 21 Moorfields where it plans to develop a new 500,000 sq ft (46,500 m2) office scheme.

The site, located at the western entrance to Liverpool Street Crossrail station, was bought for £16.5 mln (€22 mln) from Ernst & Young, which was appointed by Lloyds Bank last year as the administrator of Souzel Properties, the leasehold owner. It comprises a Transport for London (TfL) worksite and 1970s offices previously occupied by Lazard.

Land Securities said it has already submitted a planning application for two new buildings totalling 500,000 sq ft of predominantly office space with some retail at ground level.

Land Securities will own the site on two separate 250-year leases at ground rents of 5% of the net rents received. At the point of committing to construction, TfL will have the option of participating in the development and its cost, receiving a financial interest of 15-25%.

Commenting on the purchase, Colette O'Shea, managing director of the London portfolio at Land Securities, said: 'This is a site with fantastic potential and superb connectivity, located in the heart of the City, adjacent to Moorgate station and the western entrance to Liverpool Street Crossrail station.'

Land Securities was advised by Savills, Capital Real Estate Partners, and Freshfields Bruckhaus Deringer. The administrators were advised by EY Real Estate Corporate Finance and Berwin Leighton Paisner. TfL was represented by DTZ and Ashurst.