Land Securities Group PLC on Wednesday to sell an office development in London for over £800 million.

The London-based property developer and investor said it selling 21 Moorfields to Lendlease Group, a Sydney-listed investment vehicle.

Landsec said the site will be sold for £809 million, a 9% discount to the March 2022 valuation. After development-related items, Landsec will receive £733 million from the sale.

‘Landsec will retain the responsibility for completing the development, with practical completion expected in Q1 2023. Lendlease will manage the investment vehicle, on behalf of its investment partners,’ Landsec explained.

The proceeds will be used to trim debt. The transaction is to completed ‘in the coming week’.

The 21 Moorfields site is fully pre-let to Deutsche Bank AG.

Earlier on Wednesday, Landsec hailed progress it has made in London. It said that since April 1, £20.8 million of rent has either been signed or is in solicitor’s hands, on average 4% ahead of the estimated rental value in March 2022.

Office occupancy stands at 95.5% currently, creeping up from 95.3% in March.

Landsec shares were 2.0% higher 602.20 pence each in London on Wednesday afternoon.

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