Legal & General sells former Dickins & Jones department store
13 November 2006
Legal & General Assurance Society has exchanged contracts to sell its head leasehold interest in the former Dickins & Jones department store on Regent Street, London W1 for £65.1m.

The head leasehold interest from The Crown Estate has 31 years unexpired at a fixed rental income of £4,450,000 per annum, with no further rent reviews.

The purchaser is Legal & General’s subtenant, DV3 Regent Street Limited, which has just received planning permission to redevelop the Grade II Listed ex-department store into seven retail units with 100,000 sq ft (gross) of offices around a spectacular new atrium with a unique 15,000 sq ft restaurant on the new roof top floor. The development is being undertaken by Shearer Property Group and Delancey who intend to start construction imminently.

Helen Gordon, Property Director of Legal & General’s Life Fund commented that “Our tenant was the obvious purchaser of this property. We are pleased that the Shearer / Delancey proposals will make another strong addition to the West End where the Fund has a number of other interests.”

Guy Shearer of Shearer Property Group said “I am delighted that we have exchanged on the purchase of Legal & General’s interest. The signing of this deal conveniently coincides with the receipt of planning approval two weeks ago, which now means that we will be on site before Christmas.”

Tim Haden-Scott, Investment Director at Delancey said “This purchase marks another major step forward in this exciting project.”

DTZ’s Central London Team acted on behalf of Legal & General.

---