(Alliance News) - Great Portland Estates PLC has agreed to sell a London property to an overseas investor for over GBP60 million, it said on Friday.
The real estate firm said 24/25 Britton Street, located in Farringdon, is to be sold for GBP64.5 million to the unnamed buyer. This price represents a net initial yield of 4.07%, giving the site a value of GBP1,255 per square foot.
This sale price, Great Portland continued, is a 6.2% premium to the property's value as of September.
The property has both office and retail space, with the office part refurbished by Great Portland in 2011, providing 49,900 square feet of space.
The offices are let to fashion brand Kurt Geiger, on leases to 2035. The two retail spaces cover 1,500 square feet.
Combined, the property brought in GBP2.8 million of annual rent to Great Portland, equating to GBP55 per square foot.
"The sale of 24/25 Britton Street concludes a successful business plan for Great Portland. 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," said Great Portland Chief Executive Toby Courtauld.
"The disposal is consistent with our strategy of recycling capital out of mature assets."
By George Collard; georgecollard@alliancenews.com
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