Bankside123 developer Land Securities has added to its property portfolio in the area with the £67 million purchase of a building in Park Street currently let to Lloyds TSB.
Contracts have been exchanged for the purchase of Red Lion Court in Park Street from Jesta Corporation for approximately £67 million.
The 128,324 sq ft office building is let to Lloyds TSB and currently produces rent of £4.3 million per annum.
Land Securities is currently developing Bankside1 on behalf of IPC Media and where it has planning consent for a further two commercial properties on the Bankside123 scheme in Southwark Street. The company is also preparing plans for a residential development on a site nearby (Bankside4) and will be developing some affordable housing at 20 Blackfriars Road.
Mike Hussey, Managing Director, London Portfolio at Land Securities, commented: "Red Lion Court provides stable and improving income off a sensible rental base of £34 per square foot and will benefit from our own and others' considerable investment into the Bankside area."
FPD Savills acted for the Jesta Corporation and Strutt & Parker acted for Land Securities.