TCS pays £7m for Lloyds’ city home

The property investment and development company, headed by Edward Ziff, paid £7m for the home of Lloyds TSB in Park Row, in the heart of the city’s commercial district.

Mr Ziff, chairman and chief executive of Town Centre Securities, said: “Real estate like this rarely comes to the market.

“This is only the second time it has been sold in its history and we believe it will provide us with good initial cash flow and future potential opportunities.

“Although overall we are maintaining a cautious attitude given the economic background, we are prepared to be opportunistic and acquire prime income-generating properties in cities where we know the market such as Leeds.”

The landmark, granite-clad office block was built to exacting standards in the early 1970s for Lloyds as its regional headquarters. It includes a large retail banking hall on the ground floor with seven floors of office accommodation above. Lloyds TSB has just under four years left on its lease.

“This disposal demonstrates that there is still a clear demand for well-let, income producing offices in the UK’s major cities,” said AXA Real Estate, which sold the property for the Co-operative Insurance Society.

Advisor Jones Lang LaSalle added: “Investors will continue to compete for prime assets in core locations where the underlying fundamentals are strong.”