London & Stamford acquires City office scheme
A listed property investment company has purchased a City of London office scheme in a multi-million pound deal announced this morning.
London & Stamford plc has announced to the stock market it has purchased the long leasehold of One Carter Lane for £75m.
The building (pictured) is located in the heart of the City, immediately to the south of of St Paul’s Cathedral. As part of the transaction, London & Stamford have also purchased the adjacent bar and restaurant building 2 Old Change Court.
The offices offer a total of 125,844 sq ft of floor space and there is approximately 6,800 sq ft of retail space. The principal tenant is Goldman Sachs International whose lease expires in 2018, with a break clause due in March 2013.
The current rental income amounts to £5.814m per year of which 97% is received from Goldman Sachs. The buildings, previously owned by UBS Triton Property Fund were marketed at £72m following an inspection report by survey specialists Trident.
Raymond Mould, Chairman of London & Stamford Property, said: “..we are delighted to have acquired this prime, City of London property producing a relatively high net initial yield reflective of the nature of the investment.”
Following the demolition of existing buildings, One Carter Lane was completed in December 1997 by developers MEPC. Goldman Sachs International agreed to a 20-year lease in March 1998 at a rental price of £47 / sq ft following an initial 15-month rent free period.
London & Stamford have purchased the leasehold that has 136 years unexpired and the transaction reflects a net initial yield of 7.33%.
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