LondonMetric Property has exchanged contracts on the sale of One Fleet Place, EC4 , for £112.5m – a 5.1% yield.
The office block has been sold to SPV One Fleet Place Realty, a wholly owned subsidiary of a Far Eastern multinational corporation.
The sale price reflects a 3.2% premium over the property’s March 2013 value.
London & Stamford bought One Fleet Place in 2009 for £74m – a 7.75% yield.
Following the sale, LondonMetric will repay the £96m debt facility on both One Fleet Place and One Carter Lane , also EC4.
After accounting for associated costs, the net proceeds amount to circa £12.4m with a loss of net income of only £1.3m pa. One Carter Lane will then be mortgage-free. It is expected to soon be brought to market.
Patrick Vaughan, chairman of LondonMetric, said: “The timely sale of Fleet Place conforms to our opportunistic strategy for the City. We bought this well positioned building in 2009, in turbulent markets, but with an outstanding tenant and a long lease, generating a yield of nearly 8%. This was well above the City’s long term average yield range and today’s disposal yield is close to the best of that range, which we consider an appropriate moment to sell.
“Our interest in the City remains very strong and is exemplified by our on-going development in Carter Lane.”
Jones Lang LaSalle advised LondonMetric; James Andrew International acted for One Fleet Place Realty.
samanatha.mcclary@estatesgazette.com
