Lloyds building sells for £6m

NUMBER 53 King Street, the 100-year-old home of Lloyds TSB bank, has been sold for £6m.

In their first joint venture deal, Manchester-based buyers Vision Developments and private equity firm Infinity’s property fund each have an equal share in the 43,000 sq ft property.

Lloyds TSB still has two years remaining on the lease, which the companies said would provide them with an attractive income.

Stephen Cliff, managing director at Vision Developments, said the purchase price, which equates to an initial net yield of 12%, would have been “unthinkable” 12 months ago.

He said: “The building was built for Lloyds TSB nearly 100 years ago and Lloyds has been in occupation ever since. 

“Lloyds TSB has a lease which is shortly to come to an end, and we have already begun to evaluate how to maximise the building’s potential both in terms of aesthetics and uses. However, future plans for the building have not yet been finalised, and we intend to work closely with our current tenant.”

Les Lang, property partner at Infinity, added: “The building has three excellent entrances onto King Street and Cross Street creating untold potential for modernising and transforming some of its staid interiors without impinging on its history and heritage.”

On the joint venture with Vision, he said: “As like-minded companies, we can share our skill-sets and knowledge, to make this a very productive deal. Having previously worked with Stephen Cliff, I’m confident that this joint venture will be the start of a long and fruitful relationship with Vision.”

Advisers on the deal include Steve Carrick, partner at commercial agent Knight Frank, and Mathew Dobson of law firm Brabners Chaffe Street.