Landsec 123 Victoria Street Sale Agreed for £211 Million
Landsec has agreed to sell 123 Victoria Street, a 245,000 sq ft office building in London’s Westminster area, for £211 million The buyer is SevenCitiesLdn, acting on behalf of Seven Capital PLC, with completion in October.
The property comprises a 245,000 sq ft office building at 123 Victoria Street in London’s SW1 area. The property was built in the 1970s and last refurbished in 2012. Landsec said the estimated net rental income yield that it would forgo over the next five years is 6%, taking upcoming lease events into account.
Landsec 123 Victoria Street Sale Advances Office Capital Recycling
The transaction forms part of Landsec’s wider strategy to release capital from its office portfolio and redirect it towards assets that can provide higher income and income growth. The company announced an ambition in early 2025 to release £2 billion of capital from offices by 2030.
Since announcing that plan, Landsec has sold more than £550 million of office assets. Including the latest transaction, the company said it has now completed £1 billion of asset sales since its updated strategy was announced.
Under the agreement, Landsec is expected to receive £181 million when the sale completes in October. The remaining £30 million will be paid within 36 months, with the outstanding amount carrying interest at 6% annually.
The sale will reduce Landsec’s net tangible assets per share by 0.3%. Based on the initial proceeds, the company expects its loan-to-value ratio to fall by 0.9 percentage points from the March 2026 level of 38.7%, while net debt to EBITDA is expected to decline by 0.3 times from 8.4 times on a pro forma basis.
Landsec CEO Mark Allan said the transaction supports the company’s focus on sustainable income and earnings per share growth. He also pointed to continued customer demand for the company’s key assets and progress in recycling capital across its portfolio.
The Landsec 123 Victoria Street sale therefore adds another transaction to the company’s ongoing reshaping of its office holdings while providing capital for reinvestment in other parts of its property portfolio.
