UK insurer Legal & General said on Thursday that it is bringing London's 440 Strand office scheme to market as a single asset for the first time.
UK insurer Legal & General said on Thursday that it is bringing London's 440 Strand office scheme to market as a single asset for the first time.
The company is quoting offers of over £168.7 mln (€208 mln), equating to a net initial yield of 4.50%. The property is being marketed by DTZ.
Located on the Strand in Covent Garden, the building was originally constructed in the 1830s and formed part of the famous London ‘improvements’ designed by British Regency architect John Nash. The Grade II listed building was completely renovated in the 1970s and opened by Queen Elizabeth II in 1978. It currently houses the headquarters of private bank Coutts & co.
Legal & General acquired the property earlier this year as part of a portfolio of 55 assets backed by Royal Bank of Scotland which it purchased from Telereal Trillium for a total of £550 mln. In order to meet the scale of investment required to purchase this rare portfolio on behalf of its annuity business, L&G Retirement, it used combined investment from its shareholder funds, L&G Capital, on behalf of whom this asset is now being returned to the market.
440 Strand provides a total net area of 180,480 sq ft (167,000 m2), including 138,290 sq ft of Grade A office, ancillary and banking space and 42,190 sq ft of retail and restaurant space. The offices are let to the Royal Bank of Scotland, on assignment from Coutts & Co, until 17 December 2037, equating to an unexpired lease term in excess of 23.5 years.
