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.

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."