Landsec confirms £600m London sale

Landsec, the property giant behind managed workspace brand MYO, is passing the baton at 55 Old Broad Street, having confirmed the £63 million sale of its pre-development City asset to AshbyCapital.

The deal doesn't signal an exit for Landsec, however. The business will remain on as development manager, overseeing the delivery of the new circa 300,000 sq ft office scheme while AshbyCapital takes ownership and backs the project through to its planned completion in 2029.

The project has been years in the making. Planning consent for the Fletcher Priest-designed scheme was secured in 2023, paving the way for a 23-storey tower delivering around 360,000 sq ft of office space alongside 3,500 sq ft of retail, just moments from Liverpool Street station.

Replacing around 100,000 sq ft of existing floorspace, the development has been designed with sustainability at its core, retaining elements of the existing buildings, reusing materials wherever possible and delivering low-carbon workspace fit for the next generation of City occupiers.

Under the agreement, Landsec will earn a development management fee, alongside the potential for additional performance-based payments as the scheme progresses.

The company said the arrangement allows it to "leverage its significant development expertise without committing any of its own balance sheet capital", adding that the transaction reflects continued demand for high-quality, sustainable office space in core London locations and is an "example of how owners and development partners are structuring projects to unlock new supply."

The disposal also forms part of Landsec's wider strategy to reduce the capital tied up in "low/non-yielding pre-development assets", supporting its ambition to deliver around 5% compound annual earnings per share growth through to the 2030 financial year.

Managing Director for Workplace at Landsec, Marcus Geddes, said: “Landsec has been at the forefront of shaping the office landscape across the UK for decades and we’re hugely excited about bringing that expertise to bear at 55 Old Broad Street in partnership with AshbyCapital. There's clear demand for amenity-rich, highly sustainable workplaces in the best locations across London, which this development will be well placed to capitalise on.”

Charles-Etienne Lawrence, Investment Director at AshbyCapital, added: “55 Old Broad Street represents a compelling opportunity to deliver a new generation of office space in one of London’s most established business locations. We look forward to working with Landsec to create a high-quality, sustainable workplace that complements our existing portfolio and meets growing demand for well-connected space that supports collaboration and provides an exceptional working lifestyle.”

Landsec acquired the site for £85 million in 2020. Newmark and Knight Frank advised Landsec on the transaction, while Savills acted for AshbyCapital.

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