Acquisition of One Carter Lane, London

RNS Number : 5185F

London & Stamford Property PLC

27 April 2011

 



LONDON & STAMFORD PROPERTY PLC

("London & Stamford")

27 April 2011

Acquisition of One Carter Lane, London, EC4 for £75.0m

London & Stamford Property PLC ("London & Stamford") announces that it has exchanged contracts, subject only to freeholder consent, with UBS Triton Property Fund to acquire One Carter Lane and Two Old Change Court ("One Carter Lane") for £75.0m (excl. costs).

The property occupies a prominent island site in the City of London, immediately to the south of St Paul's Cathedral. It is long leasehold with a further 136 years unexpired and comprises 125,844 sq.ft of offices and 6,810 sq.ft of retail accommodation.

The current net income is £5.814m per annum, 97% of which is from Goldman Sachs International expiring in 2018. The Goldman lease has a tenant break clause in March 2013.

The transaction reflects a net initial yield of 7.33% and, initially, will be financed out of existing cash resources. Leverage may be sought following completion to enhance the cash yield further.

Raymond Mould, Chairman of London & Stamford Property, said: 

"Central London continues to show signs of economic growth and we are delighted to have acquired this prime, City of London property producing a relatively high net initial yield reflective of the nature of the investment. The transaction also represents an excellent asset management and/or refurbishment opportunity at a time when there is forecast to be a shortage of good quality buildings during a period of strong rental growth in the City." 

For further information contact:

London & Stamford Property Plc Raymond Mould Patrick Vaughan	Tel: [phone]
Kreab Gavin Anderson Richard Constant / James Benjamin / Anthony Hughes	Tel: [phone]

Notes to editors:

London & Stamford Property PLC was set up to exploit opportunities that it anticipated in the UK property cycle and is a group UK-REIT. The Company has a highly experienced management team and invests in commercial property, including office, retail and distribution real estate assets, principally in the UK.

The Company is traded on the London Stock Exchange's Main Market (LSP.L) and is authorised by the FSA to carry out certain regulated activities.

Further information on the Company is available from the Company's website: www.londonandstamford.com 

 

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