The Great Capital Partnership (“GCP”), the 50/50 Joint Venture between Capital & Counties Properties PLC and Great Portland Estates plc announces that it has sold £112.60 million of property on Regent Street at a combined surplus of 8.3% to the March 2012 valuation.
Regent Arcade House was sold to Stenham Property Ltd for £48.00 million. The 64,656 sq. ft. property is let to four office occupiers, producing £2.78 million per annum with one vacant floor and a further two floors falling vacant in September 2012 and January 2013 respectively. The property is held on a long lease from The Crown Estate (“TCE”), expiring December 2132, at a peppercorn rent. The retail elements of the basement, ground and mezzanine floors are sublet back to TCE for a term also expiring December 2132, at a peppercorn rent. The sale price reflects a Net Initial Yield of 5.5%.
Pending approval from TCE, GCP has exchanged contracts for the sale of 100 Regent Street to Hermes Real Estate Investment Management Limited (HREIML) for £64.60 million. The Grade II Listed building, located on the corner of Regent Street and Glasshouse Street totals 52,198 sq. ft. The property is held on a long lease from TCE for a term of years expiring in December 2132 and geared to 10% of retail rents received. The property is currently fully let to three occupiers on five leases and produces a net income of £2.50 million per annum and the sale price reflects a Net Initial Yield of 3.66%. GCP has agreed an overage provision with the purchaser should the property be sold in the first two years.