F&C Property Asset Management, on behalf of Friends Provident Life Assurance, has bought the freehold of 140-144 Leadenhall Street in the City of London from Navon Properties for £32m.

The deal on the 53,000 sq ft grade II listed building, which is opposite the Lloyds Building, reflects an equivalent yield of 4.9%. It was designed by British architect Sir Edwin Landseer Lutyens for Midland Bank.

The building was refurbished by Hanover Securities in 2005. It has six floors of office space, totalling 33,000 sq ft, which is let to various insurance tenants on 10 year leases. The former banking hall with a vault and strongrooms is now the Revolution bar, restaurant and club – which is let to Intentive Leisure on a 25 year lease.

Simon Lacey, head of Central London offices at F&C Property said: ‘We are confident of increased rental growth in the City, and as long term investors, we look forward to the additional improvements that will arise once the development of [British Land’s] Leadenhall Building and [Arab Investments’] Pinnacle developments are completed in 2011.’

Newton Perkins advised F&C.