Land Securities has agreed to sell the building, which will house Deutsche Bank’s new London headquarters, at a significant discount to its value.
andsec has signed deals to sell 21 Moorfields office development to an investment vehicle managed by Australia’s Lendlease for £809m (€926.9m), according to a press release.
That’s down 9 per cent from the March valuation but promises a development gain of £145m.
The commercial property market in the UK is on the move as rising interest rates narrow the spread between prime property yields and government bonds.
But new buildings with world-class environmental standards and long index-linked leases have outperformed other property types as investors seek sanctuary from runaway inflation.
Deutsche Bank has signed a 25-year lease for the 568,500-square-foot property and will pay rent of £38 million a year.
Landsec has yet to complete development, which it said should be completed in the first three months of next year.
“The scale of this joint investment in the City of London reflects the global appetite for prime and sustainable office property in the world’s key gateway cities,” said Neil Martin, CEO for Europe at Lendlease, in the statement.
Rothesay Life is funding the deal with a 10-year loan, according to the statement. The transaction is expected to close within the next week and will be used by the developer to pay down debt. Australia’s TCorp is working with Lendlease on the deal.
https://www.independent.ie/business/world/discount-sale-of-deutsche-bank-london-hq-points-to-office-market-strain-42010889.html The discount sale of Deutsche Bank’s London headquarters points to a strain on the office market