{"id":200826,"date":"2025-06-20T20:59:22","date_gmt":"2025-06-20T20:59:22","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/200826\/"},"modified":"2025-06-20T20:59:22","modified_gmt":"2025-06-20T20:59:22","slug":"landsec-to-sell-375m-london-office-development-as-strategic-pivot-picks-up-steam","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/200826\/","title":{"rendered":"Landsec To Sell \u00a3375M London Office Development As Strategic Pivot Picks Up Steam"},"content":{"rendered":"

Investment manager Cheyne Capital<\/a>, in partnership with Stanhope<\/a>, is in talks to buy a \u00a3375M office development on London\u2019s\u00a0South Bank from Landsec<\/a>.\u00a0<\/p>\n

\"Placeholder\"\/<\/p>\n

\n Courtesy of Land Securities\n <\/p>\n

\n Landsec CEO Mark Allan\n <\/p>\n

Cheyne will acquire the 230K SF Red Lion Court project in Southwark for about \u00a345M,\u00a0Bloomberg reported<\/a>. The scheme received planning consent in 2023.<\/p>\n

For Cheyne, it continues a huge push into London development financing over the past 18 months.<\/p>\n

For Landsec, the sale is part of\u00a0a plan to divest \u00a32B of office assets and reinvest the proceeds in its build-to-rent development programme. Landsec earlier this year announced plans to build 6,300 rental homes at three of its large city centre regeneration projects, part of CEO Mark Allan\u2019s push to reposition the UK\u2019s second-largest listed company into areas where income growth could be higher and risk lower.\u00a0<\/p>\n

The REIT\u00a0has dabbled in residential before. A decade ago, it planned to convert the Portland House office tower in Victoria to posh flats for sale before changing its mind and refurbishing the offices. The 300K SF scheme is set to complete later this year but\u00a0has yet to secure any tenants.<\/p>\n

Landsec intends to start building BTR apartments on three sites in 2026 and 2027: 2,800 in Lewisham in south London, 1,800 at Finchley Road in north London, and 1,700 at Mayfields in Manchester, where a planning application has just gone in for the first 880 homes.\u00a0<\/p>\n

Landsec\u00a0will spend \u00a31B on building between now and 2030 and a further \u00a32B by 2035, it said in a presentation. That would bring rented residential to about a third of its portfolio. There is potential for construction of another 2,700 homes at Media City in Manchester, and\u00a0the company has indicated it\u00a0may buy more sites as well.<\/p>\n

Homes at the initial three schemes will generate about \u00a3200M in annual rent, make a 10% to 12% internal rate of return and provide a 5% net yield on cost, Landsec said. Rented residential income tends to track inflation better than other commercial asset classes,\u00a0according to the company.\u00a0<\/p>\n

By Bisnow’s calculations, Cheyne had put out about \u00a32.5B in the UK capital since autumn 2023 prior to this deal. The investments come as others\u00a0sit on the sidelines amid market volatility.<\/p>\n

Most of Cheyne’s transactions have been debt deals, writing big-ticket loans against large developments. Those include a \u00a3500M facility for the redevelopment of office Winchester House in the City\u00a0and \u00a3400M\u00a0in loans to help Dominus<\/a>\u00a0Real Estate convert City offices to student accommodation.<\/p>\n

But more recently, it has moved toward becoming a developer itself. In addition to Red Lion Court, it bought City Link House in Croydon, an office building that will be converted into a \u00a3210M, 570-unit coliving scheme.\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"Investment manager Cheyne Capital, in partnership with Stanhope, is in talks to buy a \u00a3375M office development on…\n","protected":false},"author":2,"featured_media":200827,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7757],"tags":[748,393,4884,81103,257,81104,81105,24662,16,15],"class_list":{"0":"post-200826","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-london","8":"tag-britain","9":"tag-england","10":"tag-great-britain","11":"tag-landsec","12":"tag-london","13":"tag-mark-allan","14":"tag-red-lion-court","15":"tag-stanhope","16":"tag-uk","17":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114717705473021436","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/200826","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=200826"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/200826\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/200827"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=200826"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=200826"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=200826"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}