Great Portland Estates JV snaps up office building on Old Street

Great Portland Estates (GPE), the FTSE 250 real estate investment trust, has purchased a 97,807 square-foot office building on Old Street, Central London, which represents an opportunity to create 'significant value', the firm said on Wednesday morning.

Great Portland Estates (GPE), the FTSE 250 real estate investment trust, has purchased a 97,807 square-foot office building on Old Street, Central London, which represents an opportunity to create 'significant value', the firm said on Wednesday morning.

GPE's 50/50 joint venture with the BP Pension Fund, the Great Ropemaker Partnership (GRP), has acquired 148 Old Street from the BP Pension Fund for £30m.

The property, which is arranged over lower ground, ground and six upper floors, was bought at an "attractive initial yield" of 6.93%, according to GPE Chief Executive Officer Toby Courtauld.

It is currently held freehold and is let to Royal Mail at a rent of £2.17m per annum until 2020 with a rent review and break option in 2015.

"This is a well-located site providing opportunities to create significant value over the medium to longer term in this rapidly changing part of central London," Courtauld said.

"We have now invested more than 80% of the equity capital raised from shareholders only four months ago.With a number of interesting opportunities under review, I remain confident that the balance will be invested well within our original timing guidance of 12 to 18 months."

Recommended

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework
Investment strategy

The MoneyWeek Podcast: picking stocks is fun, but you need to do your homework

John Stepek talks to Steve Clapham, investor, analyst and author of The Smart Money Method, about the dangers in picking individual stocks and why you…
8 Apr 2021
BP looks set to return more money to shareholders as it beats expectations
Energy stocks

BP looks set to return more money to shareholders as it beats expectations

Oil major BP is to embark on a share buyback programme after significantly reducing its debts. Saloni Sardana looks at what it means for your portfoli…
6 Apr 2021
Deliveroo has hit the market – but it’s not getting the warmest welcome
UK stockmarkets

Deliveroo has hit the market – but it’s not getting the warmest welcome

Food delivery company Deliveroo made its debut on the stockmarket this morning. But with the share price sliding by 30% straight away, it’s not made t…
31 Mar 2021
Three stocks to buy now that will come back stronger after Covid-19
Share tips

Three stocks to buy now that will come back stronger after Covid-19

Professional investor Ed Wielechowski of Odyssean Capital, chooses three compelling stocks that should thrive in a post-pandemic world.
29 Mar 2021

Most Popular

The bitcoin bubble will burst: here’s how to play it
Bitcoin

The bitcoin bubble will burst: here’s how to play it

The cryptocurrency’s price has soared far beyond its fundamentals, says Matthew Partridge. Here, he looks at how to short bitcoin.
12 Apr 2021
Central banks are rushing to build digital currencies. What are they, and what do they mean for you?
Bitcoin

Central banks are rushing to build digital currencies. What are they, and what do they mean for you?

As bitcoin continues to soar in value, many of the world’s central banks are looking to emulate it by issuing their own digital currencies. But centra…
8 Apr 2021
Four investment trusts for income investors to buy now
Investment trusts

Four investment trusts for income investors to buy now

Some high-yielding listed lending funds have come through the crisis with flying colours. David Stevenson picks four of the best.
12 Apr 2021