Land Securities has completed the sale of the office building at 123 Victoria Street in central London for £211 million, representing a 20 percent reduction from its initial asking price of £265 million. The purchaser, Seven Capital, agreed to pay £54 million less than the original figure after a previous sale attempt to Sculptor Capital Management fell through due to further price reduction demands from the buyer. Sculptor had earlier agreed to a £225 million purchase last October before the deal collapsed.

The sale fits into Landsec’s broader strategic shift away from office properties and towards retail and residential assets. Mark Allan, the company’s chief executive, described the transaction as “firmly supportive” of its goal to generate sustainable income growth. Allan also indicated that the company was positioned to accelerate earnings per share growth, as outlined in its full-year results in May.

Last year, the FTSE 250 firm announced a plan to recycle £2 billion from its office portfolio by 2030, reallocating capital to sectors with the potential for higher income returns. Since then, it has sold £1 billion in assets, including more than £550 million in office properties, and is on track to meet its target. At its investor day last year, Landsec indicated it would reduce its office exposure by at least half once its current pipeline of office developments was completed. As of March 2025, offices accounted for nearly two-thirds of the company’s £10 billion property portfolio.

Landsec also plans to divest its remaining retail and leisure parks, valued at roughly £800 million, over the next few years, with the proceeds to be reinvested in destination shopping centers. Its retail portfolio currently includes Westgate in Oxford, Trinity in Leeds, and Bluewater in Kent.

Despite the sale price, Landsec acknowledged that disposing of 123 Victoria Street would mean forgoing an estimated 6 percent net rental income yield over the next five years. The building has not undergone refurbishment since 2012, and tenant leases are expected to expire within about a year, factors that likely contributed to the lower valuation.

Bjorn Zietsman, an analyst at Panmure Liberum, characterized the sale as a sensible decision, noting that it only reduced Landsec’s net tangible assets by approximately 0.3 percent. He added that although the price fell short of initial expectations, the company’s focus on shopping centers may yield returns above the estimated forgone rental income from the office sale.

Following the announcement, Land Securities’ shares experienced a modest increase, closing up 0.2 percent at 619.5 pence.