GPE in £150m London sales quartet

By James Buckley - Tuesday, October 09, 2018 9:00

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Great Portland Estates has agreed to sell four of its trophy assets in London’s West End to separate buyers for nearly £150m, CoStar News can reveal.

GPE, advised by CBRE and Michael Elliott, has exchanged contracts to sell 55 Wells Street to Italian real estate investment manager, Antirion SGR, for £65.46m. Antirion manages funds including ENPAM, Italy’s €12.5bn pension scheme for medical doctors and dentists, which bought Amazon’s London headquarters Principal Place.

GPE announced last week it had exchanged on the deal, without disclosing the identity of the buyer. The sales price equates to £64.6m after deduction of tenants’ incentives and vendor top ups and reflects a net initial yield of 3.99% and a capital value of £1,674 per sq ft. Completion is scheduled for 19 October 2018.

GPE developed 55 Wells Street, which spans 39,095 sq ft, in 2017. The offices are let to Williams Lea Limited and Synova Capital, and the ground floor is home to Yotam Ottolenghi’s new flagship restaurant ROVI. The total income is £2.79m per annum inclusive of vendor top ups, reflecting £82.80 per sq ft overall, and the WAULT is 10 years.

Colliers is understood to have advised ENPAM.

Separately, GPE has agreed to sell its 17,300 sq ft Percy House at 33-34 Gresse Street to Weybourne Group, the company that owns the Dyson Group, for the asking price of £25m, reflecting a yield of 3.8% and a capital value of £1,399 per sq ft.

GPE’s 27-35 Mortimer Street is also close to being sold to Orchard Street for the asking price of £38.2m. The 1980s-built building comprises 55,000 sq ft of office and retail space arranged over basement, ground and four upper floors. CBRE advised Orchard Street.

Harry Buxton, Acquisitions Manager at Orchard Street, commented: “Securing this property reflects our strategy of acquiring well-located, mixed-use assets within resilient markets which offer a range of potential asset management initiatives and good prospects for rental growth.

“We believe Fitzrovia will continue to thrive as a market owing to nearby developments enhancing the public realm, major infrastructure upgrades coming to fruition and Fitzrovia’s mixed-use environment appealing to a wide range of tenants, all of which will benefit the property in the long-term.”

Close by, the Langham Estate is understood to have agreed terms to buy 32-36 Great Portland Street from GPE for just over the asking price of £17.6m, or £1,352 per sq ft. The building comprises 12,900 sq ft of office and retail space arranged over basement, ground and five upper floors.

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