Great Portland sells Met Building for £107 million
28 August 2007
Great Portland Estates plc ("GPE") announces it has agreed to sell the 110,000 sq. ft. Met Building, 22 Percy Street, W1 to Lazari Investments Ltd for £107.0 million, representing a net initial yield to the purchaser of 4.1%.
Following the acquisition in June 2003 for £16.0 million, GPE undertook a comprehensive refurbishment and extension scheme at a cost of £23.8 million (£28.75 million including capitalised interest). Completed in May 2005, Met Building was substantially let by December 2005 to a strong line up of occupiers including Publicis subsidiary Zenith Optimedia, construction consultant Gardiner & Theobald, BA Pension Trustees, HSBC and NatWest. The building generates rental income of £4.7 million per annum with office rents between £41.50 and £55.00 per sq. ft., and the sale price is broadly in line with the March 2007 book value.
Toby Courtauld Chief Executive
Met Building was the first major project completed in our near term development programme and, in the four years and three months since purchase, has provided the Group with a post tax return on capital employed of 156%. The successful sale provides compelling evidence of the building's quality and is in line with our strategy of recycling capital into higher growth segments within our portfolio.
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