Savills has sold the long leasehold interest of Procession House on behalf of LGIM Real Assets (Legal & General) to a joint venture between Goldman Sachs and Greycoat for £68.75 million.
The sale represents a net initial yield of 6.04% and a capital value of £649 per sq ft.
Occupying a 0.7-acre island site at Ludgate Hill, the property provides 105,944 sq ft (9,842m2) of office, retail and ancillary accommodation. The offices are single let to Goldman Sachs International on a lease expiring 28th September 2024, subject to a tenant only break option in September 2019. The topped up gross passing rent is £4,449,985 per annum, which reflects a rent of £42 per sq ft overall.
Procession House has a planning consent for a John Robertson Architects designed a comprehensive refurbishment scheme to create a striking new headquarters office building.
Robert Buchele, director in Central London investment team at Savills, said: "Following the initial purchase on behalf of LGIM in 2014 and obtaining planning consent for a comprehensive refurbishment, the sale represents an exciting opportunity for the new owners to take the scheme forward".