Great Portland Estates plc (“GPE”) announces that it has exchanged contracts to sell 90 Queen Street, EC4 for £61 million, reflecting a net initial yield of 5.39% and a capital value of £891 per sq. ft.. Completion will occur on 20 December 2013, or earlier at GPE’s option.
The purchaser is a vehicle owned and managed by Warburg-Henderson. The 68,438 sq. ft. property is fully let, primarily to Intesa Sanpaolo (85% of the income) and two retail occupiers, producing £3.48 million per annum. The property is held majority freehold.
GPE purchased the property in 2009 for £45.8 million and subsequently restructured Intesa’s lease extending its term certain by 7 years. The current weighted average unexpired lease term of the building is approximately 7.5 years. The sale price of £61.0 million is 1.7% ahead of the June 2013 valuation.