Great Portland Estates has exchanged contracts to acquire Orchard Court, Portman Square, W1, from Rosanna Holdings Limited, for £37.0 million (approx. €42.5 million) reflecting a net initial yield of 4.64% and a capital value of £775/ft².
The 47,762 ft² (approx. 4437 m²) retail and office property is arranged over basement, ground and the first floor of a significant island site comprising the entire eastern side of Portman Square in the heart of the West End. It is let to 14 tenants paying a total rent of £1.81 million (approx. €2.08 million) per annum (£39/ft² on average) with a weighted average unexpired lease term of five years.
There are currently five rent reviews and one lease renewal outstanding which, once settled, will increase the yield to approximately 5%. The property is held on a long lease expiring in 2101 (at a fixed rent of £1,000 per annum).
Together with the purchase of Minerva House, SE1 announced in December 2012, GPE has now invested more than 70% of the proceeds from the £140.6 million share placing undertaken in November 2012.
Toby Courtauld, GPE Chief Executive said “We are pleased to have acquired Orchard Court which will deliver an accretive day one yield, off low passing rents providing us with a significant growth opportunity in an attractive and improving location. The asset also offers potential synergies with our other significant interests in the area.”
Source: Great Portland Estates