Great Portland Estates GPE has exchanged contracts on the sale of the freehold of 50 Finsbury Square to a wholly owned subsidiary of Wirtgen Invest Holding GmbH, a private German family office.

The headline price of £190 GBP million reflects a topped-up net initial yield of 3.85% and capital value of 1,471 GBP per sq ft (or 1,690 GBP per sq ft on expiry of rent frees).

GPE will still be responsible for delivering the development with the completion of the sale expected in Q1 2023 following practical completion and commencement of the leases of the office and retail space.

Net proceeds will be initially used to pay down the group's revolving credit facility and will reduce the company's loan value from 22.2% to 16.8% based on a pro-forma June 2022 balance sheet (based on March 2022 property values).

Originally a Fosters + Partners-designed building, 50 Finsbury Square is undergoing a comprehensive refurbishment with practical completion scheduled for Q4 2022.

The whole office space has been pre-let to Inmarsat Global Limited and two of the retail units have been pre-let and the other remaining two units are now under offer.

Once fully let, the rent on completion will be c. 9 million GBP per annum (subject to final area measurement on practical completion).

Toby Courtauld, Chief Executive at GPE commented: "In 50 Finsbury Square, we have created an exceptional home for Inmarsat, not least given the sustainability credentials our refurbishment will deliver. The sale is consistent with our strategy of recycling capital out of mature assets to be utilised in our many other development opportunities."

Back to 50 Finsbury Square profile.

Image: CGI of 50 Finsbury Square 50finsbury.com