Great Portland announces £75 million property disposals

Great Portland Estates P.L.C. announces property sales of £75.5 million in two separate transactions, generating a profit against March 2002 book values of £1.1 million, net of costs.

In London, it has sold the freehold interest in 21 Bloomsbury Street, WC1, to the Prudential Annuity Fund for just over £41 million. The 74,000 sq. ft. office building houses The Insolvency Service and, following a restructuring of the existing lease, is let to the Government on a non-assignable basis for 20 years with fixed rental uplifts throughout the term. The price paid reflects a net initial yield of 6%.

Outside London, it has sold its freehold interest in Weybridge Business Park, Addlestone Road, Weybridge to a life assurance company for a price of £34.3 million, representing a net initial yield of 7.1%.

The 156,000 sq ft business park was built in the 1980´s on ground and first floors and comprises a mix of nine terraced and detached units. It is multi-let to, amongst others, IBM, CSC Computer Sciences and Toshiba Ltd, with leases expiring between 2007 and 2014.

Robert Noel, Great Portland´s property director, said: 'The sale of Weybridge reflects our stated aim to concentrate on Central London markets, whilst at Bloomsbury Street the sale of the annuity cash flow we have created crystallises a valuation uplift and releases capital we can put to better use elsewhere.'

(source: Grat Portland)

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