Great Portland Estates PLC GPE sells freeholds to M&G Real Estate (6985L)
April 23 2018 - 2:00AM
UK Regulatory
TIDMGPOR
RNS Number : 6985L
Great Portland Estates PLC
23 April 2018
23 April 2018
Great Portland Estates sells 78/92 Great Portland Street and
15/19 Riding House Street, W1
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 GBP49.6 million, reflects a net initial yield of 3.9% on a
topped up basis and a capital value of GBP1,362 per sq ft. After
deduction for outstanding tenant incentives and rental guarantees,
the net price is GBP48.3 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 GBP1.2
million per annum;
-- Seven retail units totalling 11,400 sq ft let at combined
rents of GBP0.5 million per annum; and
-- Six vacant residential apartments and two flats let on assured shorthold tenancies.
The current contracted rent is GBP1.8 million per annum and a
one year rental guarantee of GBP0.3 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.
Commenting on the sale, Hugh Morgan, Director of Investment
Management at GPE said, "The redevelopment of 78/92 Great Portland
Street and 15/23 Riding House Street has not only delivered new
Grade A offices and retail units, but also satisfied the off-site
residential planning requirements for other successful schemes
including 30 Broadwick Street, 55 Wells Street and Rathbone Square.
With the commercial buildings now fully let and our business plans
complete, the sale continues our strategy of recycling capital out
of mature assets."
Contacts:
Great Portland Estates plc
Toby Courtauld, Chief Executive +44 (0) 20 7647 3042
Nick Sanderson, Finance Director +44 (0) 20 7647 3034
Finsbury Group
James Murgatroyd +44 (0) 20 7251 3801
Gordon Simpson +44 (0) 20 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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