Legal & General Property - London, 26 Red Lion Square, London, WC1

Date: 17 Mar 2010

Purchase of Holborn, London office building for £57 million and yield of 8.12%.

Legal & General Property ("LGP"), on behalf of its Managed Fund (the "Fund"), is pleased to announce that it has purchased the freehold interest in 26 Red Lion Square, London, WC1, from a client of Savills, for a total consideration of approximately £57 million. The purchase price reflects a net initial yield of 8.12%.

26 Red Lion Square is a Grade A midtown headquarters providing circa 107,000 sq ft of office accommodation over seven floors, located close to Holborn tube station. Built in 1989, the property has been let to Cable & Wireless since its completion; however, Cable & Wireless has now sub-let much of the space to The Economist and TSL Education Ltd and currently only occupies the third floor. The lease expires in January 2023 and there is a tenant break option in February 2013, offering significant asset management potential over the short term, including refurbishment, lease re-gearing or re-letting to the existing sub-tenants.

LGP was represented by dohertybaines.

Gordon Aitchison, Head of Transactions at Legal & General Property, comments:
"We had to move quickly to secure this investment, which we believe offers exceptional added value potential over the next few years. The move back into the Central London office market early in the cycle, underpins our belief in strong rental growth prospects in core locations."

26 Red Lion Square, London, WC1

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