LONDON (Alliance News) - FTSE 250-listed property development company Great Portland Estates PLC said on Monday it has sold the freehold of 78-92 Great Portland Street and 15-19 Riding House Street, London to M&G Real Estate for GBP49.6 million, reflecting a net initial yield of 3.9%.
The properties consists of a recently developed mixed-use estate, and includes 18,100 square feet of officers let to a not-for-profit organisation at a rent of GBP1.2 million until May 2027. There also is 11,400 square feet across seven retail units, plus six vacant residential apartments and two flats let on assured shorthold tenancies.
In addition, Great Portland's joint venture GHS Ltd Partnership said it has pre-let 57,200 square feet of office space at Hanover Square in W1, London to investment firm Kohlberg Kravis Roberts & Co. Partners LLP on fifteen year leases.
Following the pre-letting, GHS has committed to the development of Hanover Square, which will include a new nine-storey building containing 17,600 square feet of offices and 2,300 square feet of retail space. There also will be a separate building on New Bond Street with 31,300 square feet of retail units and 33,300 square feet of offices, along with 12,200 square feet across six residential units, 8,300 square feet of restaurant space, and 6,300 square feet of offices.
"The pre-letting to KKR is a strong endorsement of the quality of the scheme, securing 21% of the overall gross development value, and is the largest letting in Mayfair for over 10 years. We are delighted to welcome KKR to our portfolio and look forward to working with them to create their new London headquarters in this exciting development," said Chief Executive Officer Toby Courtauld.
Shares in Great Portland Estates were down 0.8% at 689.00 pence on Monday.
