Great Portland Estates Plc has announced that it has simultaneously exchanged contracts on two separate transactions with Deka Immobilien Investment GmbH.
The first transaction: GPE has sold 33 Margaret Street, W1 to Deka Deka ImmobilienEuropa fund for £216.25m – reflecting a net yield of 3.3%. The property was developed by GPE in 2012 and is part freehold/part leasehold, comprising 103,700ft² (9,634m²) of predominantly office space, as well as two retail units fronting Regent Street. The offices were fully let to Savills plc at practical completion for a term of 20 years at a rent of f £7.004m (€9.4m) per annum.
The second transaction: GPE has acquired 50 Finsbury Square, EC2 from Deka-ImmobilienGlobal fund for £119m (€160m) – reflecting a net yield of 5.32% after costs. Developed in 2000, the property is freehold and comprises 126,500ft² (11,752m²) of predominantly offices as well as four retail units fronting Finsbury Pavement. The total annual rent is £6.631m (€8.89m).
Toby Courtauld, GPE chief executive said “we have a good working relationship with Deka and are delighted to have exchanged these two transactions with them. The sale of 33 Margaret Street is the culmination of six years’ of work by the team at GPE, which has seen the property acquired, consented, built, leased and now sold crystallising a healthy IRR. 50 Finsbury Square is, by contrast, an asset that will benefit significantly from GPE’s repositioning once Bloomberg vacate, as expected. In addition, the exciting transformation of this area resulting from Crossrail, and the continued growth in the Creative/TMT sector, will provide a further catalyst for growth.”
