Private equity real estate firm AshbyCapital has completed its acquisition of the 55 Old Broad Street office development from Landsec for £63m.
As part of the sale agreement, Landsec has been appointed as development manager for the 300,000 sq ft project. AshbyCapital will fund the build-out of the City office with completion anticipated by 2029. As development manager, Landsec will receive a development management fee and potential performance-related payments. The transaction adds circa 1% to EPRA EPS on an annualised basis.
Green Street News revealed that Landsec had agreed terms with AshbyCapital for the project which will rise to 23 storeys and has a gross development value of £600m. The REIT instructed Newmark and Knight Frank last year to find a partner for the 285,000 sq ft sq ft Fletcher Priest-designed development or sell it outright.
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.”
“55 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.
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Consent was granted in 2023 for the redevelopment of the site close to Liverpool Street station, with the scheme comprising 270,000 sq ft of offices and 15,000 sq ft of retail. The company bought the site in 2020 for £87m and submitted the plans in June 2023.
The disposal forms part of Landsec’s rebalancing of its portfolio and reducing its exposure to offices in the next five years. The company is aiming to sell £2bn of office assets and its remaining retail and leisure parks as part of the strategy.