Legal & General is to acquire 99 Gresham Street in the City of London for more than £90m from LaSalle Investment Management
The 95,920 sq ft (8,911 sq m), six-storey building is diagonally opposite the Bank of England. The price reflects a net initial yield of around 4.3%.
The building is held on a 999-year lease from 18 January 2001 at a fixed head rent of £1,000 a year. It is let to six tenants until 2015, including law firm Davis Polk & Wardwell and online trading company TradeWeb.
Total net rent is £4.3m a year, which equates to £45/sq ft (£484.38/sq m), most of which is subject to review in 2009.
All parties declined to comment.