Legal & General are reported to have made an offer on 26 Red Lion Square, London.
The building is currently owned by an offshore investor, but Legal & General have registered their interest in the building with a £52 million offer, offering a 8.2% yield on the property.
26 Red Lion Square is currently leased to Cable and Wireless, which expires in January 2023. They in turn sub-lease most of the 107,000 office space development to The Economist Group. The current rent is £28 per sq ft, with a break in contract in 2013. This earns a net income of 34.9 million per annum. Part of the ground floor and the entire fourth to sixth floors are sub-let by Cable and Wireless to TSL Education.
Threadneedle, the fund managing firm, were rumoured to have put an offer in for 26 Red Lion Square previously yet a deal was never completed. The building was originally developed by Stanhope Kajima Developments. It sits an a convenient location in Camden borough near to Holborn tube station, close to a large array of restaurants, hotels and conference facilities, making an excellent base where businesses can both entertain their clients and have access to an array of amenities.
London is full of similar news, although many of these transactions are focused on the City or Canary Wharf areas. 26 Red Lion Square is based in the Midtown area where leasing deals are often plentiful but sales do seem to perform a little slower. However with the recovery of the market creating excitement and competition, we’re sure this will soon change.