UK REIT Landsec has exchanged contracts to sell 7 Soho Square in central London for a total of £78 mln (€85 mln).
The sale to the Hines Pan-European Core Fund (HECF) is expected to complete in mid-October. It reflects a 4% yield.
7 Soho Square comprises 62,000 sq ft (5,800 m2) of mostly office, plus ancillary retail and other accommodation arranged over basement, ground and six upper floors, with reconfiguration and reversionary potential.
The building is fully let, with Trip Advisor, the world’s largest travel platform occupying the majority of the office space, and planning consultancy Barton Willmore the other office tenant. The retail element on the basement and ground floor is let to Tesco.
‘Soho Square has delivered strong returns during our ownership,’ said Marcus Geddes, head of Property, Landsec. ‘This sale crystallises value that the team has created and is in line with Landsec’s strategy of recycling capital into our development pipeline.’
Peter Epping, senior managing director at Hines and fund manager for HECF, said: ‘Soho Square is an iconic landmark and positioned directly opposite the new Tottenham Court Road Elizabeth Line station entrance, it’s one of the West End’s most sought after destinations. Alongside its pinpoint location, the property presents a rare opportunity to over time leverage our value enhancement approach and create workspace that caters to a new generation of office occupiers in the post-Covid environment.’
This is third signature acquisition Hines has made in the central London market this year, closely following the purchase of a mixed-use retail and office scheme on the corner of Oxford Street and Bond Street, and the Grain House consented office scheme in Covent Garden.
Landsec was represented by Knight Frank LLP and CMS Legal.
Hines was represented by JLL and Ashurst.
