Landsec has announced that it has exchanged contracts to sell 1 & 2 New Ludgate to Sun Venture for a cash consideration of £552m. Completion is expected to take place by the end of December 2020 and is unconditional. Landsec says that the proceeds will initially be used to pay down debt before being reinvested into growth opportunities over time.
The deal is the second UK acquisition for Sun Venture, and follows their recent acquisition of One New Oxford Street from Nuveen Real Estate, one of the largest investment managers globally, on behalf of Central London Office Fund (CLOF) and British Airways Pension Trustees Limited.
About 1 & 2 New Ludgate
Occupying a highly prominent 1.5 acre site next to the Old Bailey with views of St Paul’s Cathedral, 1 & 2 New Ludgate provide a combined 389,615 sq ft of office and retail accommodation developed by Landsec in 2015. The assets generate an annualised contracted rental income of £23.7m and were valued at 31 March 2020 at £546.4m.
1 New Ludgate comprises 183,305 sq ft of office and retail accommodation and is multi-let to several occupiers, including Ropes & Gray International LLP and Commonwealth Bank of Australia.
2 New Ludgate comprises 206,310 sq ft of office and retail accommodation, with the offices let entirely to Mizuho Bank.
Comments from Marcus Geddes, Head of Property at Landsec
“The sale of 1 & 2 New Ludgate crystallises the value created by our team as we continue to execute our strategy of optimising our central London portfolio through a targeted recycling programme into new opportunities.”
Comments from Ricky Au, Chairman of Sun Venture
“1 & 2 New Ludgate are best-in-class assets and we are pleased to have them in our portfolio. London remains attractive to investors taking a long-term view, and this second acquisition forms part of our strategy to expand our presence overseas. Sun Venture remains committed to deliver value to our tenants, investors, and business associates for our London assets.”