St Martins buys the Willis Building in the City of London
21 May 2008
International property investment and development company St Martins has exchanged contracts with British Land to acquire the iconic Willis Building, at 51 Lime Street and 25 Fenchurch Avenue, in the City of London for £400 million. The sale is due to complete in June.
Designed by architect Norman Foster and developed by British Land, the Willis Building is located in the centre of the City opposite the Lloyd’s building. The property totals 496,000 sq ft in two adjoining freehold buildings of 10 and 28 storeys, and includes four retail units.
Nigel Brown, Managing Director at St Martins, said: “The Willis building is one of the City’s most iconic developments. This is a tremendous addition to our London portfolio; a trophy building offering the potential for excellent long-term returns. We have an appetite for landmark buildings and this was a rare opportunity to secure one of London’s finest. We believe it is a great investment for St Martins, offering a guaranteed income stream and long-term value.”
“It also complements the assets we are seeking to acquire in the emerging markets. We anticipate that this will be the start of a very active period for us over the next two years.”
The Willis Building will add to St Martins’ London portfolio, which aside from London Bridge City, includes: 150 Cheapside, 5 Cheapside, 2 Gresham Street, 16 St. Martin’s le Grand, Adelaide House and Chambers Wharf.
Tim Roberts, Executive Director British Land and Head of Offices, said: “This is an exceptional building and the sale locks in attractive development profits. It also underlines our track record of delivering and letting developments profitably and allows us to recycle capital, reduce gearing and add to our war chest for future opportunities. As the largest transaction in the City since the onset of the credit crunch it underlines our confidence in rising investor interest for London property as value becomes more apparent.”
The offices are let in their entirety to the Willis Group on 25 year leases from 2007 and recently became their new European headquarters. The development was the biggest pre-let development under construction in the City in 2004. British Land will top up the rent free period up to the minimum uplift on the tower in 2012 at a total cost circa £60 million.
King Sturge advised St.Martins.
Notes to editors:
Media contact for St Martins: Richard Stocks, FD Tamesis: +44 (0)20 7269 9355 or +44 (0)7951 328475
Media contact for British Land: Laura De Vere +44 (0)7739 292920
Investor contact for British Land: Amanda Jones +44 (0)20 7467 2946