Landsec announces it has sold its pre-development asset at 55 Old Broad Street to private equity real estate firm AshbyCapital for £63m.

With an NRI yield of 0%, the sale of this asset adds c.1% to EPRA EPS on an annualised basis and comes at a cost to NTA of less than 0.2%.

Landsec will act as Development Manager for Ashby, who will fund the full cost of a new c. 300,000 sq ft office development on the site, with completion expected by 2029. In this role, Landsec is entitled to receive a development management fee and potential performance-related payments. 

The sale is in line with Landsec’s strategy to reduce its capital employed in low/non-yielding pre-development assets, which is one of the drivers behind its potential to deliver c. 5% CAGR in EPS between now and FY30. The transaction allows Landsec to leverage its significant development expertise without committing any of its own balance sheet capital.