Legal & General agrees to buy Jaguar's City block
Legal & General Property has gone under offer to buy the Garden House office development in the City of London, EC2, from Irish investor Jaguar Capital, CoStar News can reveal.
The UK investment manager has agreed to buy the property, which comprises 11-13 & 19 Throgmorton Avenue and 21 Austin Friars, for £22m, reflecting a yield of 7.45%.
The prime office development is let to Deutsche Bank on a full repairing and insuring lease with upwards only rent reviews until March 2018. The building produces an annual net income of £1.72m. Passing rent is £1.77m pa, equating to a rent of £40.92 per sq ft overall.
Jaguar instructed CBRE to sell Garden House earlier this year for £25m – a 6.52% yield, reflecting a capital value of £576 per sq ft.
It is the second City asset which Jaguar Capital has put on the market this year. As revealed by CoStar News in July, Jaguar put SJ Berwin’s distinctive City office at 10 Queen Street Place under offer to Malaysian haji pilgrims fund Lembaga Tabung Haji, advised by Gatehouse Bank, for £155m, reflecting a 5.5% yield. Blackstone let 180,000 sq ft at 10 Queen Street Place, formerly known as Thames Exchange, to law firm SJ Berwin in 2004 at a rent of around £36 per sq ft.
Irish investors fronted by Jaguar bought Garden House in 2006 for £30m. The building was previously owned by Wharton Asset Management, which paid £27.1m for the block in 2004.
Garden House, which is located in the Broadgate area, has an ornate stone facade and comprises 43,382 sq ft over basement, ground and six upper floors.
All parties declined to comment.