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A Moorfields site is to be acquired by Land Securities with the intention of developing it into a 500,000 square-foot office scheme.
Land Securities entered into a conditional contract to purchase the leasehold interest of the property at the end of 2012, and accordingly will need to enter into a new development headlease with Transport for London (TfL) while implementing the compulsory purchase/compensation arrangements for land allocated to the Crossrail site.
The company has been involved with the site and its management since its conditional contract in its role as asset manager for the administrators of the current leasehold owners. The present owners, Souzel Properties, are in administration, and Land Securities are working with administrators EY, as asset manager.
Land Securities has applied for planning consent for two new buildings on the site, amounting to 500,000 square feet, with the primary use as office space, but with some retail at ground level. It will hold the site on 250-year leases and will pay TfL ground rents as a proportion of the net rents received. The site also benefits from a prime location, being adjacent to the western entrance of the Liverpool Street new Crossrail station.
An element of the deal also gives TfL the opportunity to take part in the scheme, with a financial stake of 15% to 20% and a sharing of costs equally. In addition, there is an overage agreement in place in favour of the seller, which will allow for a payment to the seller once a priority return has been achieved by the developer.
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.