Land Securities Group (LON: LAND), the FTSE 100 property company known as Landsec, has confirmed the unconditional sale of 123 Victoria Street for £211m.
The 245,000 sq ft Westminster office, built in the 1970s and refurbished in 2012, is being sold to SevenCitiesLdn, acting for Seven Capital.
Landsec shares traded at 624.5p in mid-session dealing, up 1.05% from Friday’s close of 618p, below the 726p top of their 52-week range of 507.19p to 726p and beneath both the 50-day moving average of 678.84p and the 200-day average of 635.34p.
The deal, announced via RNS this morning, is structured rather than a clean cash exit: £181m is due on completion in October, with the remaining £30m deferred over up to 36 months at 6% annual interest above Landsec’s marginal cost of borrowing. Landsec said the foregone net rental income equates to roughly a 6% yield over the next five years.
The sale extends the strategy Landsec set out in early 2025 to release £2bn from offices by 2030, redeploying capital from ageing office stock into higher-growth assets. Cumulative office disposals under the plan now exceed £550m, and total asset sales since the strategy update reach £1bn. Loan-to-value falls from 38.7% to 37.8% pro forma, net debt to EBITDA (earnings before interest, tax, depreciation and amortisation, a debt-to-profit measure) falls from 8.4x to 8.1x, and net tangible assets per share are trimmed by about 0.3%.
| Metric | Value |
|---|---|
| Sale price | £211m |
| Payment structure | £181m on completion, £30m deferred up to 36 months at 6% above cost of borrowing |
| Cumulative office disposals | £550m+ |
| Total disposals since strategy update | £1bn |
| Pro forma LTV | 38.7% to 37.8% |
| Pro forma net debt/EBITDA | 8.4x to 8.1x |
Each metric shifts by less than a percentage point or a fraction of a turn, consistent with management’s framing of the deal as supportive rather than transformative.
Mark Allan, Landsec’s chief executive, said the disposal fits the company’s central financial objective.
Our primary financial objective is to deliver sustainable growth in income and EPS and the sale of 123 Victoria Street is firmly supportive of that.
Mark Allan, Landsec