Great Portland Estates plc ("GPE") announces that it has exchanged contracts to sell 20 St James's Street, SW1 for £54.5 million, reflecting a net initial yield of 2.1% and a capital value of £982 per sq. ft. for the leasehold interest. Completion is subject to the freeholder's consent.
The purchaser is a single client account for a German Pension Fund managed by Pramerica Real Estate Investors. The 55,490 sq. ft. property is currently partially let to seven office occupiers and one retail occupier, producing a net rent of £1.2 million per annum. The office element has a current weighted average lease term of approximately 1.75 years. The property is held on a long leasehold interest (98 years unexpired) geared to 15% of rents received, subject to a base rent of £223,000 per annum.
GPE purchased the property in 2010 for £42.5 million and were planning a comprehensive refurbishment of the property in 2015.