Property firm Great Portland Estates has sold over one hundred million pounds worth of London property in three separate transactions, putting its portfolio 14 per cent ahead of the December 2011 valuation.
The company earned £82.5m of the £106m proceeds from the sales, which was at a combined net initial yield to the purchaser's of 3.28%.
The firm sold 26,000 sq ft of retail and office building located to the east of Oxford Circus. The property was sold to a fund managed by CBRE Global Investors for £38.5m, 7.2% ahead of the September 2011 valuation. The gross income is £1.79m and the price paid reflects a net initial yield of 4.4%, and £1,480 per sq ft capital value.
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The second property, Buchanan House in Holborn, was a 67,000 sq ft office and banking hall building over basement, ground and first floor and is let to HSBC until 2056 at £30,000 per annum with a review in 2019 to open market value. The freehold property was sold to Orchard Street UK Special Situations Fund II for £20.5m, 14% ahead of the September 2011 valuation. The gross income is £0.46m and the price paid reflects a net initial yield of 2.1%, and £306 per sq ft capital value.
A portfolio of adjoining properties on Park Crescent East was also sold. The properties are held by way of a long lease from The Crown Estate expiring December 2157 at a current ground rent of £15,000 per annum. The properties were sold to a subsidiary of Amazon Properties, for £47m. The gross income is £1.45m and the price paid reflects a net initial yield of 2.89%, and £443 per sq ft capital value or £780 per sq ft, reflecting the fact that some of the portfolio has been sold off on long leases.
Toby Courtauld, GPE Chief Executive said: "These sales continue our strategy of selling smaller, labour intensive and/or mature assets to recycle capital into the more meaningful opportunities within the group, and its Joint Ventures. These include the exceptional growth opportunities at our properties...as well as our extensive pipeline of longer term projects."
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