McKay completes sale of office building in City of London for £76.5m

McKay completes sale of office building in City of London for £76.5m

McKay Securities Plc (McKay), a commercial property investment company with Real Estate Investment Trust (REIT) status in the UK, has completed the sale of its long leasehold interest in 30 Lombard Street, a prime office building located in the heart of the City of London, to to ReInvest Asset Management.

”The headline sale price of £76.5m reflects a net initial yield of 4.16% on a topped-up basis and a capital value of £1,308
per sq ft. Net sale proceeds of £68.5m (after the deduction of outstanding tenant incentives, tax and sale costs) will be
used to pay down debt, prior to further investment in new acquisitions and portfolio opportunities,” said the company in a statement.

McKay acquired the long leasehold interest of 30 Lombard Street in 1999 with a multi-let 1960’s office building.

Redevelopment was completed in early 2019, securing a 62% increase in lettable area to 58,500 sq ft. The BREEAM ‘Excellent’ building was pre-let shortly before completion to FTSE 100 wealth manger, St. James’s Place plc on a 15 year lease until 2034 (without breaks) securing a net rent of £3.4 m pa (£65.00 per sq ft overall).