Great Portland Estates plc (GPE) has announced the acquisition of New City Court, 20 St. Thomas Street, London SE1 for £43.15 million (£438 per sq.ft. capital value) from a member of the Fordgate Group of Companies.
The freehold 1980s building comprises 98,500 sq.ft. of air-conditioned office accommodation located opposite London Bridge mainline station. It is multi-let to seven tenants on institutional leases, predominantly to 2011; tenants include British Airways, Pitney Bowes, Tindall Riley Marine and Greater London Enterprise Ltd. The total passing rent is £2.44 million rising to £2.79 million (£28.36 per sq.ft. overall) once a rent free period expires later this year.
North of Oxford Street, GPE has sold its freehold interest in 136/142 Great Portland Street, W1 for £16 million (£556 per sq.ft. capital value), some 26.5% ahead of its September 2005 valuation. The 28,800 sq.ft. period office and retail property produces income of £0.93 million with an Estimated Rental Value at September 2005 of £0.75 million.
Commenting on the transactions Toby Courtauld, GPE Chief Executive, said: These transactions provide further evidence of us recycling capital from properties where we have completed our asset management strategies and into attractive growth opportunities. New City Court provides the group with a significant holding opposite a major transport interchange, in a rapidly improving area of London. It produces a healthy running yield, off low rents, with plenty of asset management opportunities. The disposal of 136/142 Great Portland Street brings the total sales during the second half to £64.7 million, at an average premium to their September 2005 valuations of 25.4%.