Landsec divests London office for €287m

Land Securities (Landsec) has agreed to sell its Queen Anne's Mansions (QAM) office building in London to Arora Group for £245 mln (€287 mln) in cash.

Queen Anne's Mansions

This sale allows Landsec to realize significant value and immediately boost return on equity.
This deal is a major step toward Landsec's goal of selling £2 bn (€2.34 bn) worth of office properties by 2030, as they shift their focus to assets that can provide long-term, sustainable income and earnings per share (EPS) growth.
QAM, developed by Landsec in the 1970s, is currently fully leased until December 2028. Its value is primarily based on its future redevelopment potential.
Because the sale is happening sooner than anticipated, lease income expected through December 2026 will now be received as a lump sum in 2025. While the total cash received by Landsec remains the same, this will decrease EPRA (European Public Real Estate Association) earnings by £7 mln (€8.2 mln) in fiscal year 2026 and £15 mln (€17.6 mln) in fiscal year 2027. From fiscal year 2028 onward, EPRA earnings should not be affected and could even increase as Landsec reinvests the proceeds.
Landsec has received a 10% non-refundable deposit and expects the sale to be finalized in early December 2025. The £245 mln (€287 mln) sale price is slightly below the expected book value of £256 mln (€300 mln) at that time. This sale is projected to reduce Landsec's loan-to-value (LTV) ratio from 38.4% (as of March 2025 pro-forma) by 1.3 percentage points.
Mark Allan, CEO at Landsec, said: "This sale provides strong evidence of the continuing recovery in the central London investment market and allows us to crystallize a full value for this off-strategy asset much sooner than we had envisaged. Including QAM, overall disposals since 31 March now total c. £500m (€586m), which is ahead of our initial expectations and, combined with continued robust operational performance across the business, means we are making encouraging early progress in delivering against our strategy."