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Great Portland snaps up West End property for 37m pounds

Real estate investment trust Great Portland Estates has acquired Orchard Court, a 47,762 square-foot retail and office property located on Portman Square in the West End.

Real estate investment trust Great Portland Estates has acquired Orchard Court, a 47,762 square-foot retail and office property located on Portman Square in the West End.

The asset was purchased from Rosanna Holdings for £37m, reflecting a net initial yield of 4.64% and a capital value of £775 per square foot.

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The building is currently let to 14 tenants paying a total rent of £1.81m per annum with a weighted average unexpired lease term of five years. There are currently five rent reviews and one lease renewal outstanding which, once settled, will increase the yield to around 5.0%.

"We are pleased to have acquired Orchard Court which will deliver an accretive day one yield, off low passing rents providing us with a significant growth opportunity in an attractive and improving location," said Great Portland's Chief Executive Officer Toby Courtauld.

"The asset also offers potential synergies with our other significant interests in the area."

The company said that this acquisition, together with the purchase of Minerva House in December, means that it has no invested over 70% of the proceeds from the £140.6m share placing undertaken in November 2012.

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