Landsec Sells 1 & 2 New Ludgate
Landsec has exchanged contracts to sell 1 & 2 New Ludgate to Sun Venture for a cash consideration of £552m in a transaction that demonstrates the strong investor demand for high-quality London assets.
Completion is expected to take place by the end of this December 2020 and is unconditional. The proceeds will initially be used to pay down debt before being reinvested into growth opportunities over time.
Occupying a highly prominent 1.5-acre site next to the Old Bailey with views of St Paul’s Cathedral, 1 & 2 New Ludgate provide a combined 389,615 sq ft of office and retail accommodation developed by Landsec in 2015. The assets generate an annualised contracted rental income of £23.7m and were valued at 31 March 2020 at £546.4m.
1 New Ludgate consists of 183,305 sq ft of office and retail accommodation and is multi-let to several occupiers, including Ropes & Gray International LLP and Commonwealth Bank of Australia.
2 New Ludgate consists of 206,310 sq ft of office and retail accommodation, with the offices, let entirely to Mizuho Bank.
The sale supports Landsec’s strategy to leverage its existing strengths and position the business for growth. The company’s strategy is based on four priorities: Optimise Central London; Reimagine Regional retail; Realise capital from Subscale sectors, and Grow through Urban opportunities. 1 & 2 New Ludgate showcase the value Landsec has created in its central London portfolio and the company’s targeted approach to recycling capital into growth opportunities over time.
The deal is the second UK acquisition for Sun Venture, and follows their recent acquisition of One New Oxford Street from Nuveen Real Estate, one of the largest investment managers globally, on behalf of Central London Office Fund (CLOF) and British Airways Pension Trustees Limited.
Landsec was advised by CBRE and BCLP. JLL and CMS acted for Sun Venture.
Marcus Geddes, Head of Property at Landsec, commented: “The sale of 1 & 2 New Ludgate crystallises the value created by our team as we continue to execute our strategy of optimising our central London portfolio through a targeted recycling programme into new opportunities.”
Ricky Au, Chairman of Sun Venture, added: “1 & 2 New Ludgate are best-in-class assets and we are pleased to have them in our portfolio. London remains attractive to investors taking a long-term view, and this second acquisition forms part of our strategy to expand our presence overseas. Sun Venture remains committed to deliver value to our tenants, investors, and business associates for our London assets.”
04/12/2020 21:10 by Buildington
New Ludgate by Fletcher and Priest Architects with Sauerbruch Hutton has been shortlisted for the RIBA London Regional Award 2017!
Visit www.architecture.com/riba to find out more about the awards.
06/04/2017 08:38 by Buildington
1 & 2 New Ludgate is now fully let at an average rent of £64 per sq ft and on an average lease term of 18 years.
The principal occupiers include Mizuho, Ropes & Gray, XR Trading, Commonwealth Bank of Australia, Petronas, Cojean, Charles Tyrwhitt.
Source: Land Securities: Half-yearly results for the six months ended 30 September 2016, landsecurities.com
16/11/2016 08:10 by Buildington
New Ludgate is The City of London Building of the year 2016, reports Land Securities.
The special Livery Award was created to commend the new Leathersellers’ Hall designed by Eric Parry Architects and the refurbished Livery Hall for the Salters’ Company by dMFK at London Wall Place. The award was presented at a special Livery dinner, attended by Sir Michael Hopkins, on 12 July at Haberdashers’ Hall.
New Ludgate was selected by a jury chaired by Paul Finch, programme director of the World Architecture Festival. The criteria was to seek out the buildings that support the ambitions of the City of London in delivering a world-class working environment, by evaluating both the quality of the architectural design and the impact the building has had on the city street scene.
Paul Finch commented on New Ludgate:
“The judges felt that an area of the City where you would not have wished to walk or linger has been transformed. An eyesore had been removed and a destination created, which through the skilful deployment of colour lifted both the eye and the spirit.”
25/07/2016 19:18 by Buildington
Land Securities has secured 3 new lettings in the New Ludgate development, taking the scheme to 92% let.
Commonwealth Bank of Australia will move its European headquarters to 44,000 sq ft on the first and second floors at One New Ludgate on a 15 year lease.
International law firm Ropes & Gray, which signed a 20 year lease for 45,000 sq ft at One New Ludgate last year, will now take a further 13,000 sq ft on the building’s fifth floor.
Global sales and marketing consultancy ZS Associates International has signed on 13,000 sq ft on the eighth floor of One New Ludgate.
New Ludgate is made up of two distinct buildings, One and Two New Ludgate, which completed in April. The scheme comprises 355,000 sq ft of office space and 26,000 sq ft of retail and restaurant space, including contemporary Italian restaurant Obicà, Parisian lunch outlet Cojean, Burger & Lobster, Jamie’s Italian and Association Coffee. Two New Ludgate was pre-let in its entirety to Japanese bank Mizuho Group last year.
Kaela Fenn-Smith, Head of Commercial at Land Securities, said: “It’s fantastic news that ZS Associates and Commonwealth Bank of Australia have both chosen New Ludgate, and we’re delighted that Ropes & Gray have secured extra space to support their growth in London. With its resilient and well-engineered office space, refreshing mix of new shops, restaurants and public space at ground level, and excellent connectivity, New Ludgate is a great place for these three companies to do business. We look forward to welcoming them all to the building when they start moving in later this year.”
Iain Morpeth, Real Estate partner at Ropes & Gray said: “We are delighted to have had the opportunity to increase our space within this landmark building. This allows us to support our continued growth and deliver an exciting and flexible environment for our London office. We look forward to taking occupation in October 2015.”
07/08/2015 09:48 by Buildington
Although constructed using different methods, One New Ludgate, a 10-storey steel-frame building, and Two New Ludgate, a 10-storey concrete-frame building, were completed ahead of schedule, reports Skanska.
The development is set to achieve environment standard BREEAM Excellent through the use of green solutions. These include on site power generation from solar panels on the roof, a combined heating and power plant (CHP) in the basement, and capturing rainwater and waste water to use across the development.
Managing Director Paul Heather said: “We’re delighted to have completed One and Two New Ludgate. The main challenges were constructing two completely different buildings to a very short programme, with one delivery entrance, in a busy London site opposite the Old Bailey. I’m extremely pleased with the quality we have achieved.
“These distinctive buildings are a notable addition to our portfolio of high-quality offices in the capital.”
In June 2013, Land Securities appointed Skanska as the main contractor to design and construct New Ludgate, including the mechanical and electrical fit-out of selected floors and the creation of a public square. Working closely with the client from the start, Skanska put together a specialist in-house team, combining its skills in design, construction, mechanical and electrical engineering and ceiling installation.
Alongside Skanska, the architects for the scheme were Fletcher Priest (masterplan and One New Ludgate), Sauerbruch Hutton (Two New Ludgate) and Gustafson Porter (landscaping).
23/07/2015 15:25 by Buildington
1 & 2 New Ludgate is currently 87% let with a further 5% in solicitors’ hands.
Source: Land Securities First Quarter Interim Management Statement 22.07.2015
22/07/2015 11:07 by Buildington
Land Securities recently celebrated the completion of 1 & 2 New Ludgate, EC4, a 381,000 sq ft office and retail development located between St Paul’s and the Old Bailey, which is now 92% let or under offer.
Development Director Robert Hume discusses the changing face of the City of London:
"The success of the scheme highlights both the extent to which demand for quality office space is outstripping supply in the City and the area’s increasing popularity as a place to shop and spend leisure time. With their colourful facades and generous public realm, 1 & 2 New Ludgate also underline our responsibility as developers to have a lasting positive impact on the built environment.
We timed delivery of the scheme to ensure it came to the market when occupier demand was peaking and supply of the right space was low. This commitment to starting development early in the property cycle is evident across our London portfolio, and has led to record leasing levels over the last year
With City leasing activity in the first quarter of 2015 up 34% on the same period in 2014, a year which saw the highest letting activity in the square mile since 1998, we are bringing 1 & 2 New Ludgate to the market at the right time. Deloitte’s recent Crane Survey found that construction activity in London rose 24% in the six months to March of this year, with nearly half of all activity located in the City. Developers are clearly optimistic, however those that are now rushing to meet current occupier demand may be disappointed by schemes that complete further down the line.
The retail leasing success at 1 & 2 New Ludgate highlights the changing identity of the City from a purely business hub to a visitor destination with diverse appeal. A number of our projects have propelled this transformation, not least One New Change, EC4, which has established the area as a centre for top high street brands. In January, we opened the hugely popular 20 Fenchurch Street Sky Garden, making the best views of the capital available free to the public for the first time.
From our customers’ perspective, having excellent amenities close to the office space they occupy is increasingly important. The leading international businesses which have taken office space at 1 & 2 New Ludgate will benefit not just from open-plan naturally lit floorspaces, fantastic views of the capital, and an outdoor terrace, but also from top on-site retail and dining options. Leading brands already committed to the scheme include Coco di Mama, Association Coffee, Charles Tyrwhitt and Obicà.
Delivering our New Ludgate scheme at the right time with a great retail offering has been important to us from the outset. Also of critical importance has been ensuring that the development accords with the City’s unique architectural landscape. Fletcher Priest’s design for 1 New Ludgate has helped restore the processional route to St Paul’s and improve views of the cathedral at street level, whilst the new public piazza and walking route between the buildings will provide respite for City workers and visitors. At 2 New Ludgate, Sauerbruch Hutton has installed colourful facades, adding some much needed energy to an otherwise predictable built environment.
Here at Land Securities, we look forward to building on our contribution to the City’s transformation through delivering excellent spaces for businesses, retailers and visitors."
Source: Land Securities 15.06.2015
01/07/2015 11:52 by Buildington
2 Ludgate has been pre-let to Mizuho Group on a 20 year lease.
Source: - Land Securities Financial results for the year ended 31 March 2014 www.landsecurities.com
15/05/2014 13:15 by Buildington
Land Securities have decided to complete the office space to Category A fit-out rather than shell and core to provide occupiers with the ability to occupy earlier. This will add four weeks to the base construction period and consequently practical completion will now be May 2015.
Source: Land Securities Third Quarter Interim Management Statement 22. January 2014 www.landsecurities.com
22/01/2014 12:30 by Buildington
07/10/2013 01:27 by Buildington
Land Securities Group PLC has appointed Skanska as the main contractor to design and construct the new mixed-use development at 1 & 2 New Ludgate, London EC4.
The £109 million construction contract will start in August 2013 and complete in April 2015. It is designed to meet the BREEAM ‘Excellent’ standard.
The 379,000sqft scheme is close to St Paul’s Cathedral. Two office buildings will be linked by a public piazza and improved pedestrian routes, with 33,000sqft of retail and restaurant facilities at ground and basement levels.
The contract includes design and construction, to Category ‘A’ fit-out on selected floors, plus public realm works.
The new development is already well connected with existing local transport links, but in 2018 access to Crossrail, Thameslink and London Underground will be within easy reach when works at the nearby Farringdon Station are completed, making this a highly sought-after City location.
The public realm enhancements will create an attractive environment for office workers, pedestrians and visitors alike.
“1 & 2 New Ludgate will be an attractive addition to the City of London and reflects increasing confidence in the City office market,” said Paul Heather, managing director, Skanska UK. “To help ensure its success from the start, we worked in close collaboration with Land Securities to minimise risk to the project before we even break ground. Our expertise in BIM, for example, enabled us to consider at an early stage the detailed challenges of the distinctive ‘flying carpet’ roof.
“We look forward to working with Land Securities to create a desirable and appealing destination in this part of London.”
Source: Skanska www.skanska.co.uk 21.06.2013
26/06/2013 18:20 by Buildington
04/06/2012 00:08 by Buildington