Singapore based Sun Venture has paid UK REIT Landsec £552 million (€612 million) for 1 & 2 New Ludgate in the City of London.
The complex occupies a 1.5 acre site next to the Old Bailey, close to St Paul’s Cathedral, and has 389,615 sq ft (36,196 sq m) of office and retail accommodation developed by Landsec in 2015. The assets produce annual rents of £23.7 million and were valued in March at £546.4 million.
1 New Ludgate comprises 183,305 sq ft of offices and retail space has occupiers that include law firm Ropes & Gray International and Commonwealth Bank of Australia. Mizuho Bank occupies the office component of the 206,310 sq ft at 2 New Ludgate. Landsec was advised by CBRE and BCLP. JLL and CMS acted for Sun Venture.
Sun Venture’s acquisition “demonstrates the strong investor demand for high quality London assets” LandSec said in a statement. The deal is expected to be completed by the end of the year and is unconditional. LandSec plans to use the proceeds to pay down debt and for reinvestment.
Ricky Au, Chairman of Sun Venture, said: “London remains attractive to investors taking a long-term view, and this second acquisition forms part of our strategy to expand our presence overseas. Sun Venture remains committed to deliver value to our tenants, investors, and business associates for our London assets.”
The deal is Sun Venture’s second in the UK and follows it July acquisition of the 110,000 sq ft (10,219 sq m) One New Oxford Street from Nuveen Real Estate.