Land Securities on Friday said there is “strong investor demand” for high quality properties in London as it revealed a £552 million deal to sell office buildings 1 & 2 New Ludgate.
The FTSE 100 property giant said it has exchanged contracts to sell its 1.5 acre site next to the Old Bailey, to Singapore-based investment firm Sun Venture.
Completion is expected by the end of this month, and the proceeds will be used to pay down debts and will be reinvested into growth opportunities.
The scheme, 1 & 2 New Ludgate, comprises 389,615 square feet of office and retail space developed by Landsec in 2015.
The assets generate annual rental income of £23.7 million and were valued at at £546.4 million as at March.
Tenants there include Commonwealth Bank of Australia and Mizuho Bank.
The sale comes shortly after Landsec in October said it would look to sell some properties to “crystallise significant value already created”, and invest in new projects in London.
Ricky Au, chairman of Sun Venture, said: "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.”
Landsec was advised by property agent CBRE and JLL represented the buyer.