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.

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.

Recommended

Share tips of the week – 22 October
Share tips

Share tips of the week – 22 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
22 Oct 2021
Three dividend stocks from the dynamic Asia/Pacific region
Share tips

Three dividend stocks from the dynamic Asia/Pacific region

Professional investor Sat Duhra of the Henderson Far East Income investment trust highlights three of his favourite stocks.
18 Oct 2021
Share tips of the week – 15 October
Share tips

Share tips of the week – 15 October

MoneyWeek’s comprehensive guide to the best of this week’s share tips from the rest of the UK's financial pages.
15 Oct 2021
Trading: stash the family cash in this cheap wealth management firm
Trading

Trading: stash the family cash in this cheap wealth management firm

Wealth management is a growth market. Rathbone Brothers should be a prime beneficiary – and looks cheap. Matthew Partridge explains the best way to pl…
12 Oct 2021

Most Popular

How to invest as we move to a hydrogen economy
Energy

How to invest as we move to a hydrogen economy

The government has started to roll out its plans for switching us over from fossil fuels to hydrogen and renewable energy. Should investors buy in? St…
8 Oct 2021
How to invest in SMRs – the future of green energy
Energy

How to invest in SMRs – the future of green energy

The UK’s electricity supply needs to be more robust for days when the wind doesn’t blow. We need nuclear power, says Dominic Frisby. And the future of…
6 Oct 2021
Why the world’s most important economic data release has unnerved markets
US Economy

Why the world’s most important economic data release has unnerved markets

The US added only 194,000 jobs in September, far shorter than the 500,000 that were expected. John Stepek explains why markets didn't react as they no…
11 Oct 2021