Great Portland Estates has sold 27/35 Mortimer Street for £38.5 million to Orchard Street Investment Management on behalf of St James’s Place UK PLC. The sale price of £38.5 million reflects a net initial yield of 3.9% and a capital value of £1,242 per sq ft.
27/35 Mortimer Street is fully let and provides a total rental income of £1,602,365 per annum reflecting £57.70 per sq ft on the offices and £36.69 per sq ft on the ground and basement retail, which is let to Sainsbury’s Supermarket Limited.
Hugh Morgan, Director of Investment Management at Great Portland Estates commented: "The sale of 27/35 Mortimer Street is marginally ahead of the March 2018 book value and follows the profitable sale of the adjacent Mortimer House in April 2016."
Harry Buxton, Acquisitions Manager at Orchard Street, said: “Securing this property reflects our strategy of acquiring well-located, mixed-use assets within resilient markets which offer a range of potential asset management initiatives and good prospects for rental growth. We believe Fitzrovia will continue to thrive as a market owing to nearby developments enhancing the public realm, major infrastructure upgrades coming to fruition and Fitzrovia’s mixed-use environment appealing to a wide range of tenants, all of which will benefit the property in the long-term”.
Orchard Street was advised by CBRE. The vendor was advised by Michael Elliott.