Great Portland Estates PLC GPE sells freeholds to M&G Real Estate (6985L)

TIDMGPOR

RNS Number : 6985L

Great Portland Estates PLC

23 April 2018

23 April 2018

Great Portland Estates sells 78/92 Great Portland Street and 15/19 Riding House Street, W1

Great Portland Estates plc ("GPE") announces that it has sold the freehold of 78/92 Great Portland Street and 15/19 Riding House Street (the "Property") to the M&G Real Estate. The headline price of GBP49.6 million, reflects a net initial yield of 3.9% on a topped up basis and a capital value of GBP1,362 per sq ft. After deduction for outstanding tenant incentives and rental guarantees, the net price is GBP48.3 million, ahead of the September 2017 book value.

The Property comprises a mixed use estate recently redeveloped by GPE and includes:

-- Grade A offices totalling 18,100 sq ft let in their entirety to a not-for-profit organisation until May 2027 at a rent of GBP1.2 million per annum;

-- Seven retail units totalling 11,400 sq ft let at combined rents of GBP0.5 million per annum; and

   --      Six vacant residential apartments and two flats let on assured shorthold tenancies. 

The current contracted rent is GBP1.8 million per annum and a one year rental guarantee of GBP0.3 million was provided on the vacant residential.

GPE will retain a 999 year interest in nine new apartments at 80 Great Portland Street and 15/19 Riding House Street which are currently being marketed for sale.

Commenting on the sale, Hugh Morgan, Director of Investment Management at GPE said, "The redevelopment of 78/92 Great Portland Street and 15/23 Riding House Street has not only delivered new Grade A offices and retail units, but also satisfied the off-site residential planning requirements for other successful schemes including 30 Broadwick Street, 55 Wells Street and Rathbone Square. With the commercial buildings now fully let and our business plans complete, the sale continues our strategy of recycling capital out of mature assets."

Contacts:

Great Portland Estates plc

Toby Courtauld, Chief Executive [phone]

Nick Sanderson, Finance Director [phone]

Finsbury Group

James Murgatroyd [phone]

Gordon Simpson [phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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April 23, 2018 02:00 ET (06:00 GMT)