M&G set to sell Bankside 2 and 3

M&G Real Estate is to put Bankside 2 and Bankside 3, SE1, up for sale for about £400m – a net initial yield of 4.75%. Cushman and Wakefield was instructed to sell the 450,000 sq ft mixed-use site, whose 370,000 sq ft of office space is let to advertising giant Omnicom. The buildings were developed by Land Securities in 2007 and sold to M&G Real Estate in 2013 for around the asking price of £312m, a net initial yield of 5.25%. It was initially pre-let to Royal Bank of Scotland on two 20-year leases, set to expire in September 2027, at £40.50 per sq ft with five-yearly upwards-only rent reviews. The bank later sublet the office space to Omnicom for about £45 per sq ft in 2014 in what was one of the biggest letting deals of the year, behind Amazon’s 430,000 sq ft letting at Principal Place, EC2. • To send feedback, e-mail karl.tomusk@estatesgazette.com or tweet @ktomusk or @estatesgazette