Metrovacesa buys London office complex

MADRID Fri Sep 14, 2007 8:02pm BST

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MADRID (Reuters) - Spanish property firm Metrovacesa said on Friday it bought an office complex in London's City financial zone for 240 million pounds from insurer Legal and General.

Metrovacesa said it would spend a total of 1.4 billion euros (697 million pounds) redeveloping the site into four buildings, to be known as Walbrook Square, that would give it 87,819 square meters of rental office space.

Spain's biggest property firm, which will finance the deal with a planned share issue worth 750 million euros and the sale of nonstrategic assets, said in April it was on the lookout for more projects in London after buying the headquarters of bank HSBC.

Metrovacesa said the project, which will take up to 8 years to complete, would provide a return of 7 percent based on similar projects in London.

(Reporting by Ben Harding)

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