Private investor buys Land Secs HQ at 6.5%

A private investor has acquired the London office building that houses the headquarters of Land Securities for £44 mln (EUR 48 mln). The transaction volume represents an initial yield of 6.5%.

5 The Strand was sold by LaSalle Investment Management on behalf of a retained pension fund client. The 6,709 m² property, prominently located next to Trafalgar Square, was developed by the pension fund in 1980 and completed in 1983. It will remain the headquartersof Land Securities for a further nine years.

LaSalle Investment Management fund manager Julian Agnew said, 'This is an asset where we have recently re-geared the leases with the tenants and therefore have looked to capitalise on the current demand for offices within the West End. We will look to reinvest these proceeds and further monies into assets that have potential for change of use through planning or into multi-let buildings with short leases .Our preference is to work with partners on theses type of situations.'

LaSalle Investment management was represented by Jones Lang LaSalle. The private investor was not represented by a third party.