Land Securities sells Bankside to M&G Real Estate

Land Securities has agreed to sell Bankside 2 & 3, SE1, and its retail holdings in Bankside 1, to M&G Real Estate Limited for £315m, reflecting a net initial yield of 5.2 percent.

Bankside comprises three striking buildings, totalling 915,000 sqm of grade A offices and retail, as well as public space. The office element of Bankside 1, the Blue Fin Building, was sold to IPC Magazines Group PLC for their own occupation, while the adjacent 1.75 acre site was sold to a joint venture between Grosvenor and Native Land for the development of 217 residential units which now form the Neo Bankside scheme.

Bankside 2 & 3 comprise more than 380,000 sqm of office accommodation let to Royal Bank of Scotland until 2027. The sale to M&G Real Estate includes 73,000 sqm of retail space let to several retailers.

Knight Frank acted on behalf of Land Securities and Jones Lang LaSalle advised M&G Real Estate.