Finance

Landsec sells London office property to Hong Kong developer for $432 million


UK landlord Land Securities said on Friday it sold One New Street Square office property in London to Hong Kong-based Chinachem Group for 349.5 million pounds ($432.12 million), in tune with its strategy to offload mature office spaces in the capital.

British landlords are grappling with a valuation slump of their properties, plagued by rising interest rates and broader economic uncertainty.

The 276,502 square-feet office space had a valuation of 362.8 million pounds in September 2022, Landsec said.

Landsec, after a strategic review undertaken in late 2020, had planned to sell about 2.5 billion pounds worth of mature London offices. With the latest sale, it is just 400 million pounds short of that target and will use the proceeds to repay debt.

London-headquartered Landsec, which has about 11 billion pounds worth of assets, with two-thirds of those properties in Central London, counts office spaces as its primary portfolio.

One New Street Square property, which Landsec bought in 2005 and, has 14 years of unexpired lease term remaining with Deloitte which has fully let the office space.

Landsec, one of the top UK landlords, had said in November the overall value of its properties dropped 2.9 per cent as of Sept. 30 from the end of March, while the value of its key office portfolio dropped 4.4 per cent.

($1 = 0.8088 pounds)



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