Landsec has sold 55 Old Broad Street in the City of London to private equity real estate firm AshbyCapital for £63m.
Landsec will act as development manager for AshbyCapital, which will fund the full cost of a new circa 300,000 sq ft office development on the site, with completion expected by 2029.
The REIT will also lead leasing and marketing for the building and is entitled to receive a development management fee and potential performance-related payments.
The sale is in line with Landsec’s strategy to deliver sustainable income and EPS growth, in part by releasing capital from low and non-yielding pre-development assets.
Marcus Geddes, managing director for workplace at Landsec, said: “Landsec has been at the forefront of shaping the office landscape across the UK for decades and we’re hugely excited about bringing that expertise to bear at 55 Old Broad Street in partnership with AshbyCapital. There’s clear demand for amenity-rich, highly sustainable workplaces in the best locations across London, which this development will be well placed to capitalise on.”
Charles-Etienne Lawrence, investment director at AshbyCapital, added: “Fifty five Old Broad Street represents a compelling opportunity to deliver a new generation of office space in one of London’s most established business locations. We look forward to working with Landsec to create a high quality, sustainable workplace that complements our existing portfolio and meets growing demand for well-connected space that supports collaboration and provides an exceptional working lifestyle.”
Lee Marks, executive vice president at Skanska, which has been appointed to deliver the new development, said: “Fifty Five Old Broad Street is in a prime City of London location, just a stone’s throw from Liverpool Street Station. This development will create high quality, future-ready workspace in an exceptionally well-connected commercial district. We are proud to be partnering with AshbyCapital and bringing Skanska’s specialist expertise to a scheme of this scale and significance.”
