Land Securities Group PLC Landsec sells One New Street Square (1365O)
27 Gennaio 2023 - 12:59PM
UK Regulatory
TIDMLAND
RNS Number : 1365O
Land Securities Group PLC
27 January 2023
LAND SECURITIES GROUP PLC ("Landsec")
Landsec sells One New Street Square for GBP349.5m
Landsec announces that it has exchanged contracts for and
completed on the sale of One New Street Square, EC4 to Chinachem
Group, a property developer based in Hong Kong with a real estate
portfolio of 8.4m sq ft valued at US$13.7bn.
The total consideration for the sale amounts to GBP349.5m. The
sale price compares to a September 2022 valuation of GBP362.8m and
crystallises a total return on capital averaging 10% per annum
since Landsec's acquisition of the site in June 2005 and subsequent
redevelopment in 2016.
One New Street Square is fully let to Deloitte, with a 14-year
unexpired lease term remaining and a current annual net rent of
GBP16.8m. With limited opportunities to add further value, the
disposal is in line with Landsec's strategy to recycle capital out
of mature London offices.
With its strategic review in late 2020, Landsec announced its
intention to sell c. GBP2.5bn of mature London offices over the
medium term. With the inclusion of 1 New Street Square, the company
has now sold GBP2.1bn of offices, representing an average yield of
4.4%.
The disposal proceeds will initially be used to repay debt and,
on a pro-forma basis, would reduce Landsec's LTV from 31.1% to
28.9% based on September 2022 valuations. Its strong balance sheet
provides Landsec with significant optionality for future
reinvestment in higher-return opportunities which are expected to
emerge as markets continue to adjust to a new reality.
Marcus Geddes, Managing Director, Central London at Landsec said
: "One New Street Square is a premium 276,502 sq ft London BREEAM
'Outstanding' office development, which was completed in 2016 and
fully let to Deloitte during construction on a 20-year lease. This
represents a clear demonstration of our strategy in action and our
strong customer relationships. Through this sale we have been able
to unlock capital at a rate that has provided strong returns over
our 18 years of ownership. Crystallising these returns enables us
to turn towards future opportunities and future growth through
balance sheet strength and flexibility."
Donald Choi, Executive Director and CEO of Chinachem Group,
said: "We're delighted to have acquired One New Street Square
successfully as it is located in the strategic Central London area
with best-in-class building specifications and attractive returns.
This is an important step forward for the Group and we intend to
hold this property for long-term investment."
He added: "While Hong Kong will remain our home and core market,
we intend to incrementally increase the Group's exposure in gateway
cities of major developed markets, so as to fulfil our business
diversification objectives and build a resilient, long-term income
stream."
Knight Frank advised Landsec, and Savills advised Chinachem
Group.
Ends
About Landsec
At Landsec, we build and invest in buildings, spaces and
partnerships to create sustainable places, connect communities and
realise potential. We are one of the largest real estate companies
in Europe, with a GBP10.9 billion portfolio of retail, leisure,
workspace and residential hubs. Landsec is shaping a better future
by leading our industry on environmental and social sustainability
while delivering value for our shareholders, great experiences for
our guests and positive change for our communities.
Find out more at landsec.com
Please contact:
Press Investors
Sara Doggett Edward Thacker
+44 (0)7834 431258 +44 (0) 7887 825869
sara.doggett@landsec.com edward.thacker@landsec.com
About Chinachem Group
Since 1960, Chinachem Group has been a leading property
developer in Hong Kong, with a portfolio covering residential,
commercial, retail and industrial buildings for sales and
investment, in addition to operating hotels, property management as
well as healthcare and elderly services. The Group actively seeks
to make a positive contribution to society through its adherence to
the "Triple Bottom Line", a commitment that its activities will
benefit People, bring Prosperity to the community and preserve the
Planet. Please visit www.chinachemgroup.com/en
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END
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January 27, 2023 06:59 ET (11:59 GMT)
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