Great Portland Estates has exchanged contracts to sell 24/25 Britton Street, EC1 to an overseas investor for a headline sale price of €75.5m (£64.5m), equating to €75m (£64.06m) after deduction of vendor top-ups. The headline price reflects a net initial yield of 4.07% and a capital value of €1,469 (£1,255) per ft².
The office element of the building was comprehensively refurbished by GPE in 2011 to provide 49,900ft²of high-quality accommodation arranged over two lower ground, ground and three upper floors. The office space is let to Kurt Geiger where we recently re-geared the lease to extend the term to 2035. In addition, there are two retail units fronting Britton Street (1,500ft²). The current weighted unexpired lease term is approximately 14.8 years to the earlier of expiries or breaks.
"The sale of 24/25 Britton Street concludes a successful business plan for GPE. Having refurbished and pre-let the property to Kurt Geiger in 2011, we subsequently re-geared the lease in 2019 before marketing the property for sale. The disposal is consistent with our strategy of recycling capital out of mature assets," said Chief Executive Toby Courtauld.