McKay Securities Plc has recently exchanged contracts to sell the long
leasehold interest in 30 Lombard Street.
The headline sale price of £76.5m (prior to the deduction of outstanding tenant incentives, tax and sale costs), reflects a net initial yield of 4.16% on a topped-up basis and a capital value of £1,308 per sq ft.
Completion of the sale is subject to Landlord’s consent and satisfaction of certain conditions relating to highways matters, potentially requiring third party approval, with an estimated timescale of circa three months. A further announcement will be made when the sale completes.
The redevelopment of 30 Lombard Street by McKay was completed in early 2019. Providing 58,500 sq ft over 11 floors, the BREEAM ‘Excellent’ building was pre-let shortly before completion to FTSE 100 wealth manager, St. James's Place plc on a 15-year lease until 2034 (without breaks) securing a net rent of £3.4 million pa (£65.00 per sq ft overall).
Together with its core City location, it offers outstanding column-free office space and excellent natural light, with a substantial roof terrace.
McKay acquired the long leasehold interest of the site in 1999 with a multi-let 36,000 sq ft 1960’s office building generating rental income of £1.1 million pa. Income was retained from the building while planning consent was achieved for the current scheme, securing a 62% increase in lettable area.
McKay’s successful capital raising in 2014 facilitated the speculative redevelopment of the property, resulting in the generation of shareholder value and the enhancement of this historic City location with a building of the highest quality.
On completion of the sale, proceeds will initially be used to pay down debt, prior to re-investment in new acquisitions and portfolio opportunities.
Knight Frank acted for McKay and BNP Paribas acted for the purchaser.
28/12/2019 22:48 by Buildington
Given the strength of overseas investment demand in the Central London office market, McKay Securities PLC has recently instructed agents to explore the disposal of the Aurum development at 30 Lombard Street.
Aurum was completed in January 2019. St James's Place, the FTSE 100 wealth manager, committed to a 15-year lease (without break) of the whole of the high quality 58,000 sq ft office scheme.
Source: McKay Securities Plc half year results for the six months ended 30th September 2019 mckaysecurities.plc.uk.
18/11/2019 10:24 by Buildington
McKay Securities PLC, the only UK REIT specialising exclusively in the London and South East office and industrial markets, has achieved practical completion of 30 Lombard Street, EC3. As a result, the pre-let to St James’s Place PLC (St James’s Place) announced last year is now unconditional and will commence on 24th January 2019.
St James’s Place, the FTSE 100 wealth manager, has committed to a 15-year lease (without break) of the whole of the high quality 58,000 sq ft office scheme in this core City location.
The contracted net rental income of £3.40m pa, equivalent to £65.00 per square foot, was agreed in line with ERV and includes five-yearly upward only rent reviews. The pre-let has added to a successful leasing period across McKay’s portfolio which still retains a portfolio reversion of 23.1%, equivalent to
McKay acquired the long leasehold interest of the site in 1999 with a 36,000 sq ft 1960’s office building generating a rental income of £1.11m pa and a planning consent in place for 53,500 sq ft. Income was retained from the building while an improved planning consent was achieved for the current scheme, securing a 62% increase in lettable area. Capital investment and the decision to speculatively redevelop the property in 2015 was unlocked through McKay’s successful capital raising in 2014, which provided additional financial resources to implement this unique market opportunity.
Knight Frank and Savills acted on behalf of McKay while Doherty Baines acted for St. James's Place.
14/01/2019 11:50 by Buildington
The construction works are progressing well at 30 Lombard Street and the scheme remains on target to complete in mid-2018, reports McKay Securities.
The full marketing campaign will be launched shortly.
Source: McKay Securities Full Year results for the year ended 31 March 2017 22.05.2017 mckaysecurities.plc.uk.
24/05/2017 10:38 by Buildington