South East Office Market gets off to a flying start
January 6, 2012
Legal & General has got the south east office market off to a flying start to 2012 by agreeing a deal with long-time Croydon occupier Nestle.
L&G has agreed a 20-year lease with the confectionery giant at its 1 City Place in Crawley ending Croydon council’s dreams to keeping the company and its 2,000 strong worforce in the Borough.
As part of the deal L&G will take ownership of Nestlé’s current home 24-storey St George’s House in Croydon.
Nestlé has agreed a starting rent of £22.50 per sq ft with annual RPI uplifts.
L&G’s UK Property Income Fund bought the 130,800 sq ft Crawley site before Christmas from RREEF for £39m – a yield of 7.75% – and completed the surrender of BT’s existing lease on the property.
