Legal & General Property, on behalf of its Managed Fund, said it has purchased the freehold interest in 26 Red Lion Square, London, for around £57 mln (EUR 62.7 mln)from a client of real estate adviser Savills. The purchase price reflects a net initial yield of 8.12%.
Legal & General Property, on behalf of its Managed Fund, said it has purchased the freehold interest in 26 Red Lion Square, London, for around £57 mln (EUR 62.7 mln)from a client of real estate adviser Savills. The purchase price reflects a net initial yield of 8.12%.
26 Red Lion Square provides around 107,000 sq ft (10,000 m2) of office accommodation over seven floors and is located close to London's Holborn tube station. Built in 1989, the property has been let to Cable & Wireless since its completion. However, Cable & Wireless has now sub-let much of the space to The Economist and TSL Education Ltd and currently only occupies the third floor. The lease expires in January 2023 and there is a tenant break option in February 2013, offering significant asset management potential over the short term, including refurbishment, lease re-gearing or re-letting to the existing sub-tenants.
LGP was represented in the transaction by Doherty Baines.
