News release

Landsec sells 1 & 2 New Ludgate for £552m to Sun Venture

JLL completes £552m purchase on behalf of Sun Venture

December 04, 2020

Landsec has announced that it had exchanged contracts to sell 1 & 2 New Ludgate to Sun Venture for a cash consideration of £552m in a transaction that demonstrates the strong investor demand for high quality London assets. Completion is expected to take place by the end of this month and is unconditional. The proceeds will initially be used to pay down debt before being reinvested into growth opportunities over time.

Occupying a highly prominent 1.5 acre site next to the Old Bailey with views of St Paul’s Cathedral, 1 & 2 New Ludgate provide a combined 389,615 sq ft of office and retail accommodation developed by Landsec in 2015. The assets generate an annualised contracted rental income of £23.7m.

1 New Ludgate comprises 183,305 sq ft of office and retail accommodation and is multi-let to several occupiers, including Ropes & Gray International LLP and Commonwealth Bank of Australia. 2 New Ludgate comprises 206,310 sq ft of office and retail accommodation, with the offices let entirely to Mizuho Bank.

The transaction supports Landsec’s strategy to leverage its existing strengths and position the business for growth. The company’s strategy is based on four priorities: Optimise Central London; Reimagine Regional retail; Realise capital from Subscale sectors; and Grow through Urban opportunities. 1 & 2 New Ludgate showcase the value Landsec has created in its central London portfolio and the company’s targeted approach to recycling capital into growth opportunities over time.

The deal is the second UK acquisition for Sun Venture, and follows their recent acquisition of One New Oxford Street from Nuveen Real Estate, one of the largest investment managers globally, on behalf of Central London Office Fund (CLOF) and British Airways Pension Trustees Limited.

John Woodger, director central London capital markets at JLL, said: “The acquisition of One & Two New Ludgate by Sun Venture further demonstrates the attractiveness of London’s best-in-class assets to international investors taking a long term view, despite the headwinds during 2020.  JLL forecasts that transaction volumes across central London will see a considerable boost during Q4, with a number of large scaletransactions progressing, showing signs of a recovery looking ahead to 2021.”

Tim Graham, executive director, head of capital strategies, Asia Pacific at JLL, added: “As one of the largest global cross border deals of 2020, the acquisition by Sun Venture further underlines the confidence in best-in-class, income producing assets from Asian capital. One & Two New Ludgate represents the largest investment transaction in the UK this year - the strong underlying fundamentals provide attractive portfolio diversification. Asian capital will continue to become a more influential presence in global real estate markets and the expertise of Singapore-based investors in international real estate markets will undoubtedly play to their advantage in 2021 and beyond.” 

Marcus Geddes, head of property at Landsec, commented: “The sale of 1 & 2 New Ludgate crystallises the value created by our team as we continue to execute our strategy of optimising our central London portfolio through a targeted recycling programme into new opportunities.”

Ricky Au, chairman of Sun Venture, said: “1 & 2 New Ludgate are best-in-class assets and we are pleased to have them in our portfolio. London remains attractive to investors taking a long-term view, and this second acquisition forms part of our strategy to expand our presence overseas. Sun Venture remains committed to deliver value to our tenants, investors, and business associates for our London assets.”

Landsec was advised by CBRE and BCLP. JLL and CMS acted for Sun Venture.

About JLL


JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $18.0 billion in 2019, operations in over 80 countries and a global workforce of over 92,000 as of September 30, 2020. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com.