The historic bank building at 53 King Street, home to Lloyds TSB for nearly 100 years, has been bought from LaSalle Investment Management for £6m by Stephen Cliff's Vision Developments in a joint venture with Infinity, the property private equity fund.
The building totals 43,000 sq ft and includes a large banking hall on the ground floor. Lloyds TSB has two years remaining on its lease. The purchase reflects a net initial yield of 12%.
Cliff, formerly a director at Ask Developments before setting up Vision, said the yield reflected the bargains available in the market today and would have been 'unthinkable' a year or two ago.
He added: "The building was built for Lloyds TSB nearly 100 years ago and Lloyds has been in occupation ever since it was built. Lloyds TSB has a lease which is shortly to come to an end, and we have already begun to evaluate how to maximise the building's potential both in terms of aesthetics and uses. However future plans for the building have not yet been finalised, and we intend to work closely with our current tenant."
Les Lang, property partner at Infinity, commented: "This investment is significant as it marks a successful and very attractive deal in the current climate. The building has three excellent entrances onto King Street and Cross Street creating untold potential for modernising and transforming some of its staid interiors without impinging on its history and heritage."
Infinity and Vision was advised by Steve Carrick at Knight Frank and Mathew Dobson at Brabners Chaffe Street. Jones Lang LaSalle advised LaSalle Investment Management.