UK REIT Land Securities said on Wednesday that it has completed the sale of a 50% stake in the Empress State building iat Earls Court, London to a joint venture with Liberty International. The transaction volume amounts to £108 mln (EUR 136 mln), reflecting a net initial yield of 5.68%.
UK REIT Land Securities said on Wednesday that it has completed the sale of a 50% stake in the Empress State building iat Earls Court, London to a joint venture with Liberty International. The transaction volume amounts to £108 mln (EUR 136 mln), reflecting a net initial yield of 5.68%.
The 43,664 m2 building is let to the Metropolitan Police at a current rent of £12.27 mln. At the same time, the new partnership has refinanced the holding through a joint £159 mln facility with Abbey UK Corporate Banking and Eurohypo.
'We have held the asset for a number of years but saw limited asset management opportunities in the near future. However, the joint venture with Liberty offers us the ability to realise value from the asset while being well placed to benefit from the continued attraction of this part of London and our combined knowledge of the area,' said Richard Linnell, head of investment management for Land Securities' London Portfolio.
The company said it will recycle the sale proceeds into the Group business. Land Securities was advised by Franc Warwick.
