Landsec and international real estate firm Hines announce the exchange of contracts on the sale of 7 Soho Square for a total consideration of £78m.
The sale to the Hines Pan-European Core Fund (HECF) is expected to complete in mid-October 2020. The sale price reflects a 4% yield.
7 Soho Square comprises c.62,000 sq ft of mostly office, plus ancillary retail and other accommodation arranged over basement, ground and six upper floors, with reconfiguration and reversionary potential. The property is located in one of the most vibrant and popular areas of the West End and benefits from excellent transport access.
The building is currently fully let, with Trip Advisor, the world’s largest travel platform occupying the majority of the office space, and planning consultancy Barton Willmore the other office tenant. The retail element on the basement and ground floor is let to Tesco.
Marcus Geddes, Head of Property, Landsec, commented: “Soho Square has delivered strong returns during our ownership. This sale crystallises value that the team has created and is in line with Landsec’s strategy of recycling capital into our development pipeline.”
Peter Epping, Senior Managing Director at Hines and Fund Manager for HECF, added: “Soho Square is an iconic landmark and positioned directly opposite the new Tottenham Court Road Elizabeth Line station entrance, it’s one of the West End’s most sought after destinations. Alongside its pinpoint location, the property presents a rare opportunity to over time leverage our value enhancement approach and create workspace that caters to a new generation of office occupiers in the post-Covid environment.”
This is third signature acquisition Hines has made in the central London market this year, closely following the purchase of a mixed-use retail and office scheme on the corner of Oxford Street and Bond Street, and the Grain House consented office scheme in Covent Garden.
Landsec was represented by Knight Frank LLP and CMS Legal. Hines was represented by JLL and Ashurst.