Great Portland Estates plc has sold the freehold of 78/92 Great Portland Street and 15/19 Riding House Street to M&G Real Estate.
The headline price of £49.6 million reflects a net initial yield of 3.9% on a topped up basis and a capital value of £1,362 per sq ft. After deduction for outstanding tenant incentives and rental guarantees, the net price is £48.3 million, ahead of the September 2017 book value.
The Property comprises a mixed-use estate recently redeveloped by GPE and includes:
Grade A offices totalling 18,100 sq ft let in their entirety to a not-for-profit organisation until May 2027 at a rent of £1.2 million per annum;
Seven retail units totalling 11,400 sq ft let at combined rents of £0.5 million per annum; and
Six vacant residential apartments and two flats let on assured shorthold tenancies.
The current contracted rent is £1.8 million per annum and a one-year rental guarantee of £0.3 million was provided on the vacant residential.
GPE will retain a 999-year interest in nine new apartments at 80 Great Portland Street and 15/19 Riding House Street which are currently being marketed for sale.
Hugh Morgan, Director of Investment Management, commented: "The redevelopment of 78/92 Great Portland Street and 15/23 Riding House Street has not only delivered new Grade A offices and retail units but also satisfied the off-site residential planning requirements for other successful schemes including 30 Broadwick Street, 55 Wells Street and Rathbone Square. With the commercial buildings now fully let and our business plans complete, the sale continues our strategy of recycling capital out of mature assets."
23/04/2018 20:04 by Buildington
The mixed-use schemes at 78/82, 84/86 and 90/92 Great Portland Street completed between August 2016 and May 2017 - a total some 49,200 sq ft of new space, comprising 18,000 sq ft of offices, 10,700 sq ft of retail space and 26 residential units, including a number of off-site residential planning requirements for the developments at Hanover Square, 30 Broadwick Street and 55 Wells Street in W1.
GPE sold the affordable housing (9 units) to a housing association and will start marketing 15 units for private
Source: Great Portland Estates plc results for the year to 31 March 2017 24.05.2017 gpe.co.uk.
24/05/2017 11:11 by Buildington
The strip out works have completed at the 78/82 Great Portland Street 18,900 sq ft mixed use redevelopment and the main contract is due to commence in
The scheme will accommodate the off-site residential space associated with the development at 30 Broadwick Street, W1.
Source: Great Portland Estates trading update for the quarter to 30 June 2015.
08/07/2015 13:25 by Buildington