22 January 2009
City Corporation to buy Fleet Street Estate
On Thursday 22 January the City of London Corporation completed
the purchase of the Fleet Street Estate from Land Securities at the
price of around £74 million.
The Fleet Street Estate comprises eight adjoining self-contained
buildings which provide an aggregate lettable floor area of 200,512
square feet (18,628 square metres).
The freehold site occupies a prime position in the heart of
London’s Midtown district. The Estate is bounded by Fleet Street to
the north, Whitefriars Street to the west, Salisbury Square and
Salisbury Court to the east and the Harrow public house and
Primrose Hill to the south. A substantial part of the site is
occupied by the Office of Fair Trading.
This important central London location is now home to some of
the world’s leading corporations. The European headquarters of
Goldman Sachs International is situated directly opposite and the
offices of Freshfields Bruckhaus Deringer and KPMG are located
immediately nearby.
Ownership is being transferred to the City in three tranches,
with the later two tranches being transferred once renovation works
have been completed.
Sheriff George Gillon, Chairman of the City of London’s Property
Committee said: "This is a significant strategic purchase for the
City of London Corporation and shows the City’s confidence in the
long term prospects for City property. Long term income secured
against a Government covenant is also attractive at this time of
declining interest rates."
Richard Linnell, Head of Investment Management in Land
Securities’ London Portfolio, said: "We have assembled this site
around the Headquarters of the OFT, and have added value with the
recent extension of the OFT lease. We believe that the capital
released by this sale will work better for us by generating
out-performance in other areas than through redeveloping this
particular site."
The City Surveyor and Drivers Jonas acted on behalf of the City
of London Corporation and BH2 acted for Land Securities.
Ends
Notes to editors:
For further information please call: Fiona Milligan, City of
London, Direct Line: 020 7332 3451 or Mobile: 07900 244 200 or
email
fiona.milligan@cityoflondon.gov.uk or
Laura Citron, Direct Line: 020 7332 1835 or
laura.citron@cityoflondon.gov.uk