McKay Securities has sold 30 Lombard Street, EC3, to Switzerland-based ReInvest Capital for £76.5m.
The price reflects a 4.16% net initial yield on a topped-up basis and a capital value of £1,308 per sq ft. McKay put the 58,585 sq ft building up for sale through Knight Frank in September this year.
The office block, known as Aurum, comes with a 15-year lease in place with FTSE 100 St James’s Place Wealth Management Group, which pays gross rent of £3.8m per annum, £65 per sq ft overall.
McKay acquired the long leasehold interest in the site in 1999 with a multilet 36,000 sq ft 1960s office building generating rental income of £1.1m pa. Income was retained from the building while planning consent was achieved for the current scheme, securing a 62% increase in lettable area.
Proceeds from the sale will initially be used to pay down debt, prior to reinvestment in new acquisitions and portfolio opportunities.
BNP Paribas Real Estate acted for purchaser ReInvest.
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