Great Portland Estates plc (“GPE”) announces that it has sold the freehold of 78/92 Great Portland Street and 15/19 Riding House Street (the “Property”) to the M&G Real Estate. The headline price of £49.6 million, reflects a net initial yield of 3.9% on a topped up basis and a capital value of £1,362 per sq ft. After deduction for outstanding occupier incentives and rental guarantees, the net price is £48.3 million, ahead of the September 2017 book value.
The Property comprises a mixed use estate recently redeveloped by GPE and includes:
- Grade A offices totalling 18,100 sq ft let in their entirety to a not-for-profit organisation until May 2027 at a rent of £1.2 million per annum;
- Seven retail units totalling 11,400 sq ft let at combined rents of £0.5 million per annum; and
- Six vacant residential apartments and two flats let on assured shorthold tenancies.
The current contracted rent is £1.8 million per annum and a one year rental guarantee of £0.3 million was provided on the vacant residential.
GPE will retain a 999 year interest in nine new apartments at 80 Great Portland Street and 15/19 Riding House Street which are currently being marketed for sale.