Real estate giant acquires central London "best-in-class destination" in £87m deal

One of the largest property and real estate specialists in the UK has acquired a site in the centre of London in a multi-million pound deal.

Landsec has agreed to acquire 55 Old Broad Street from PGIM Real Estate for a headline price of £87m.

Situated close to Liverpool Street station, the 100,000 sq ft 10 storey office-led building wraps around Landsec’s City office tower Dashwood.

The building is currently 87 per cent let, with existing tenants including Ecom Agrotrade, GB Railfreight and Barclays.

The deal has exchanged on an unconditional basis and is expected to complete in January. Knight Frank represented Landsec, while PGIM Real Estate was represented by Squarebrook and JLL.

Nick de Mestre, head of investment at Landsec, commented: “55 Old Broad Street is a well-located asset in the heart of London.

“The development potential of this asset, combined with the potential for Dashwood, offers Landsec the opportunity to deliver a compelling, best-in-class destination over the medium term.

“This acquisition demonstrates our commitment to optimising our central London portfolio through the reinvestment of capital, as set out in our strategy.”

Charles Crowe, head of UK transactions at PGIM Real Estate, added: “I am pleased with the significant value we were able to create through our ownership of 55 Old Broad Street and its successful sale.

“PGIM Real Estate had reached the end of its business plan by achieving leasing stabilization post refurbishment and engineering a block date in 2024, that will enable a larger re-development of the site. The sale crystallizes a strong return since purchase in 2012.”