FPDSavills - Offices - London, 80 Leadenhall Street

Date: 04 Sep 1998

Hanover Property Unit Trust has sold the freehold office and retail investment at 80 Leadenhall Street to GUD Pension Trust for a price in the region of £10.75 million showing a net initial yield of circa 5.75%.

The trust acquired the building vacant trom the Receivers to Sheraton Securities in 1995 and let the offices to US insurance brokers Reliance National and the basement wine bar to The Old Monk Company during 1996 at rents totalling £645,000 per annum (£27 per sq ft). The 24,600 sq ft building is let for a further 13 years with a tenant's break under the Reliance National lease in April 2006.

Ceri Walker of fund manager, PRICOA said: "The sale is in line with Hanover's policy of acquiring properties where we can add value and then realise a profit once we have completed the exercise."

The property represents the first acquisition for GUD in the City for more than five years, as the fund seeks to benefit from London's increasingly active role in Europe. Savills Fund Management believes that with City rents continuing to rise, the property offers good long-term potential for both rental and capital growth.

BH2 and PRICOA Property Investment Management acted for Hanover, while Savills Fund Management acted for GUD Pension Trust.

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