Great Portland Estates (“GPE”) has exchanged contracts to acquire Orchard Court, Portman Square, W1, from Rosanna Holdings Limited, for £37.0 million reflecting a net initial yield of 4.64% and a capital value of £775 per sq. ft.
The 47,762 sq. ft. retail and office property is arranged over basement, ground and the first floor of a significant island site comprising the entire eastern side of Portman Square in the heart of the West End. It is let to 14 occupiers paying a total rent of £1.81 million per annum (£39 per sq. ft. on average) with a weighted average unexpired lease term of 5 years. There are currently five rent reviews and one lease renewal outstanding which, once settled, will increase the yield to approximately 5%. The property is held on a long lease expiring in 2101 (at a fixed rent of £1,000 per annum).
Together with the purchase of Minerva House, SE1 announced in December 2012, GPE has now invested more than 70% of the proceeds from the £140.6 million share placingundertaken in November 2012.
"We are pleased to have acquired Orchard Court which will deliver an accretive day one yield, off low passing rents providing us with a significant growth opportunity in an attractive and improving location. The asset also offers potential synergies with our other significant interests in the area."
