Land Securities has today announced it has unconditionally agreed to purchase the leasehold interest in in a 1.9 acre site in the City of London for £16.5 million.
The site, which currently comprises an unoccupied 1970s office building and a TfL worksite, is at 21 Moorfields in close proximity to Liverpool Street Crossrail station.
Land Securities entered into a conditional agreement over the acquisition of the site in 2012 and has since acted as asset manager for EY, the Administrators of the current leasehold owners Souzel Properties.
Before Land Securities could finalise the purchase of the site, it had to agree a new development head lease with TfL and conclude compulsory purchase compensation arrangements on behalf of the Administrator for land required by Crossrail.
Both these objectives have now been met allowing Land Securities to unconditionally agree to the purchase and submit a planning application for two new buildings totalling around 500,000 sq ft. The new development will provide office accommodation and an element of ground floor retail space.
Land Securities will own the site on two separate 250 year leases at ground rents of 5 per cent of the net rents received. TfL has the option of participating in the development with an interest of 15 to 25 per cent.
Discussing the purchase, Colette O’Shea, Managing Director, London Portfolio at Land Securities, said: “This is a site with fantastic potential and superb connectivity, located in the heart of the City, adjacent to Moorgate station and the western entrance to Liverpool Street Crossrail station.”
Speaking on behalf of TfL, Director of Commercial Development, Graeme Craig said: “This deal with Land Securities is a fantastic example of the work we’re doing to make the most of our assets whilst generating long-term revenue for us to reinvest back into our network. Our partnership will enable the development of office space in the heart of London as well as retail space.”
