# Land Securities to sell 1 & 2 New Ludgate to Sun Venture for a cash consideration of £552 million

- Link: https://www.directorstalkinterviews.com/land-securities-to-sell-1-2-new-ludgate-to-sun-venture-for-a-cash-consideration-of-552-million/412944166
- Published: 2020-12-04T07:21:37+00:00
- Author: Amilia Stone

**[Land Securities Group plc](https://www.directorstalkinterviews.com/ftse-company/land-securities-group/land.l)**(
LON:LAND) has announced that it 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 month 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 comprises 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 comprises 206,310 sq ft of office and retail accommodation,
with the offices let entirely to Mizuho Bank.    

The transaction 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.

> **Ricky Au, Chairman of Sun Venture, said:**
> “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.”

> **Marcus Geddes, Head of Property at Land Securities Group, 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.”  

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