Legal & General Property has sold its leasehold interest in 28 Cavendish Square, in London’s West End, to its freeholder, Lancer, for £5.35m, representing a net initial yield of 4.0%. Hanover Green represented Lancer in the acquisition.
The occupational lease in the 6,845 sq ft retail unit is let to Royal Bank of Scotland until 2037, with 23 years left to run.
Lancer owns many other properties which sit within a the Cavendish Island site, including 200,000 sq ft of offices, nine Oxford Street shops and the London College of Fashion.
Legal & General says the asset offers a major medium-term development opportunity as part of the potential regeneration of the entire site which Lancer bought in 2005 for about £425m, apart from 28 Cavendish Square and BHS.
The property is situated on the southern stretch of Cavendish Square in a prominent position at the junction where Holles Street meets Cavendish Square.
It formed part of L&G’s purchase this March of a portfolio of 55 assets backed by RBS from Telereal Trillium for £550m.
This latest deal come hard on the heels of the disposal of Coutts’ headquarters at 440 Strand to Henderson UK Property Unit Trust for £175m, representing a net initial yield of 4.34% and 97 New Bond Street to Wittington Investments for £18.7m, representing a net initial yield of 2.3%.
Hanover Green advised Lancer in the 28 Cavendish Square deal.