Great Portland Estates plc announces that it has exchanged contracts for the sale of its freehold interest in 90 Fetter Lane, London EC4 to Blue Capital Europa Immobilien GmbH for £37.33 million. The price to be paid represents an 8% premium to the property's book value at 31 March 2005.
The property was constructed by GPE in the early 1990's and comprises 58,000 ft² of office space over 6 floors let to two firms of solicitors; Bird & Bird and Goodman Derrick and a 4,000 ft² public house let to Mitchells & Butlers. The current rent receivable of £2,467,590 per annum reflects a headline office rent of £44.50 per ft², compared to a market value of £33.50 per ft² as at March 2005, and shows the purchaser a net initial yield of 6.25% after acquisition costs. Weighted by rent, the average unexpired lease length is 10 years.
Toby Courtauld, Chief Executive of GPE said; "90 Fetter Lane has performed well over the last two years and we believe this is the right time to crystallize our position and recycle the capital more profitably elsewhere, in line with our strategy to actively manage the group's portfolio."
Source: Great Portland Estates
