Landsec sells 123 Victoria Street
in £211m deal

Landsec has struck a £211m deal to sell 123 Victoria Street to Seven Capital, as the property giant continues to scale back its exposure to offices. Spanning 245,000 sq ft, the Victoria address combines traditional workspace, retail and ancillary space - and is also home to Landsec’s flexible office brand MYO.

SevenCitiesLdn has acquired the building on behalf of Seven Capital, with the deal expected to complete next month. Landsec will receive £181m on completion, with a further £30m payable within 36 months.

Sitting just a three-minute walk from Victoria station, 123 Victoria Street has been part of Landsec’s portfolio for years. Originally built in the 1970s, the building underwent a major refurbishment in 2012 as part of a £150m project.

Today, the address spans 245,000 sq ft across workspace, retail and supporting space, with MYO operating its flexible workspace across Levels 2 and 3. The location offers private offices alongside shared lounges, meeting rooms and event space, giving the sale a flex angle alongside the wider office transaction.

The £211m deal puts another sizeable dent in Landsec’s £2bn office sell-down target, as the property giant continues its wider pivot towards retail and residential.

Around £1bn of assets have already been sold since the strategy was unveiled, including more than £550m of offices, with Landsec saying it remains on track to hit its overall target. Taking upcoming lease events into account, 123 Victoria Street is expected to deliver an estimated net rental income yield of 6% over the next five years. Landsec said the disposal will reduce its net asset value per share by 0.3%.

Mark Allan, chief executive of Landsec, said: “Our primary financial objective is to deliver sustainable growth in income and EPS and the sale of 123 Victoria Street is firmly supportive of that."

“This strong occupational market backdrop and continued progress on asset recycling, coupled with our sector leading debt maturity profile and highly efficient cost base, means we remain well placed to deliver on the acceleration in EPS growth we set out at our full-year results in May.”

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