(Alliance News) - Great Portland Estates PLC on Thursday said it has completed the sale of the newly refurbished 50 Finsbury Square in East London for GBP190.0 million.
The London-based property development and investment company said the building has been sold to a wholly owned subsidiary of German investment holding company, Wirtgen Invest Holding GmbH, with the sale price reflecting a topped up initial yield of 3.9% and capital value of GBP1,471 per square foot.
Construction of the 129,200 square foot building was completed in January, with leases to Inmarsat Global Ltd and other smaller retailers beginning shortly afterwards. The company said that, following verification, 50 Finsbury Square will be its first net-zero carbon development.
Great Portland said the proceeds of the sale would be used to pay down its revolving credit facility, and reduce its loan value from 24% to 19% based on a pro-forma September 2022 balance sheet.
Chief Executive Officer Toby Courtauld said: "The sale of 50 Finsbury Square concludes an exceptional development project for GPE. The completion of the sale enables us to recycle capital out of a mature asset where we have created value into our substantial development pipeline which is stacked full of future opportunities."
Great Portland shares were trading 0.4% lower at 593.00 pence each on Thursday morning in London.
By Harvey Dorset, Alliance News reporter
Comments and questions to newsroom@alliancenews.com
Copyright 2023 Alliance News Ltd. All Rights Reserved.
GPE (GPE)