City of London office building to be sold in £76.5m disposal deal

An office building in the heart of the City of London is set to be sole in a disposal deal worth £76.5m.

Office, industrial and logistics REIT McKay Securities has announced it has exchanged contract to sell the long leasehold interest in 30 Lombard Street to an unnamed buyer.

McKay originally acquired the long leasehold interest of the site in 1999, with a multi-let 36,000 sq ft 1960’s office building generating rental income of £1.1m per annum.

The firm, which specialises entirely in real estate in London and the South East, completed the redevelopment of the 58,500 sq ft space earlier this year.

The space is currently pre-let to wealth manager St James’s Place on a 15 year lease until 2034.

The proceeds from the deal, which is expected to be completed next year, will initially be used to pay down debt, as well as enabling McKay to focus on new acquisitions and portfolio opportunities.

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