Thank In one of the largest global cross border deals of 2020 Landsec is pleased to announce that it has exchanged contracts to sell 1 & 2 New Ludgate sold to Sun Venture for a cash consideration of £552m in a transaction that demonstrates the strong investor demand for high quality London assets. Landsec was advised by CBRE and BCLP. Tim Graham, Executive Director, Head of Capital Strategies, Asia Pacific, JLL and CMS acted for Sun Venture.

Completion is expected to take place by the end of this month and is unconditional. The proceeds will initially be used to pay down debt before being reinvested into growth opportunities over time.

Occupying a highly prominent 1.5 acre site next to the Old Bailey with views of St Paul’s Cathedral, 1 & 2 New Ludgate provide a combined 389,615 sq ft of office and retail accommodation developed by Landsec in 2015. The assets generate an annualised contracted rental income of £23.7m and were valued at 31 March 2020 at £546.4m.

1 New Ludgate comprises 183,305 sq ft of office and retail accommodation and is multi-let to several occupiers, including Ropes & Gray International LLP and Commonwealth Bank of Australia. 2 New Ludgate comprises 206,310 sq ft of office and retail accommodation, with the offices let entirely to Mizuho Bank.

“As one of the largest global cross border deals of 2020, the acquisition by Sun Venture further underlines the confidence in best-in-class, income producing assets from Asian capital. One & Two New Ludgate represents the largest investment transaction in the UK this year - the strong underlying fundamentals provide attractive portfolio diversification. Asian capital will continue to become a more influential presence in global real estate markets and the expertise of Singapore-based investors in international real estate markets will undoubtedly play to their advantage in 2021 and beyond.” Tim Graham, Executive Director, Head of Capital Strategies, Asia Pacific, JLL.

The transaction supports Landsec’s strategy to leverage its existing strengths and position the business for growth. The company’s strategy is based on four priorities: Optimise Central London; Reimagine Regional retail; Realise capital from Subscale sectors; and Grow through Urban opportunities. 1 & 2 New Ludgate showcase the value Landsec has created in its central London portfolio and the company’s targeted approach to recycling capital into growth opportunities over time.

The deal is the second UK acquisition for Sun Venture, and follows their recent acquisition of One New Oxford Street from Nuveen Real Estate, one of the largest investment managers globally, on behalf of Central London Office Fund (CLOF) and British Airways Pension Trustees Limited.

Landsec was advised by CBRE and BCLP. JLL and CMS acted for Sun Venture. Marcus Geddes, Head of Property at Landsec, commented:

“The sale of 1 & 2 New Ludgate crystallises the value created by our team as we continue to execute our strategy of optimising our central London portfolio through a targeted recycling programme into new opportunities.”

 Ricky Au, Chairman of Sun Venture, said:

“1 & 2 New Ludgate are best-in-class assets and we are pleased to have them in our portfolio. 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.

Tim Graham, Executive Director, Head of Capital Strategies, Asia Pacific, JLL: Photo below.