Great Portland Estates PLC GPE sells 73/89 Oxford Street, W1 for £276.5m (2667P)
November 16 2016 - 2:00AM
UK Regulatory
TIDMGPOR
RNS Number : 2667P
Great Portland Estates PLC
16 November 2016
16 November 2016
GPE sells 73/89 Oxford Street, W1 for GBP276.5 million.
Great Portland Estates plc ("GPE") has completed the sale of the
freehold of 73/89 Oxford Street and 1 Dean Street, London, W1
("Oxford Street") to Norges Bank Real Estate Management ("NBREM")
for a price of GBP276.5 million, reflecting a net initial yield to
the buyer of 3.2%.
The office and retail development is under construction with
practical completion ("PC") expected in Q2 2017. The scheme is
pre-let to New Look Retailers Ltd, Benetton Group S.r.l and
Moneysupermarket.com Group PLC with a WAULT of 17.0 years. The rent
on completion will be GBP9.74 million per annum (subject to final
measurement on PC).
NBREM have paid GBP205.2 million, with the balance of the
purchase price payable on completion of the leases following PC.
The price NBREM will pay allows for a deduction in lieu of interest
on their initial capital outlay until PC at a rate of 3.2% per
annum and an allowance for tenant rent free periods. Based on the
current cost and programme, GPE will receive two further payments
on completion of the leases in July 2017 of GBP46.2 million in
deferred consideration and GBP25.1 million for reimbursement of the
development costs to complete the scheme.
Toby Courtauld said, "Oxford Street has been an exceptional
project for us and this sale continues our strategy of recycling
capital out of assets where we have created significant value.
Having secured an attractive planning permission, pre-let the
building and enhanced our interest through the purchase of the
freehold earlier this year, this sale crystallises a whole life
capital return of 75% and an annualised unlevered IRR of
28.4%."
Contacts:
Great Portland Estates plc
Toby Courtauld, Chief Executive +44 (0) 20 7647 3042
Neil Thompson, Executive Director +44 (0) 20 7647 3029
Finsbury Group
+44 (0) 20 7251
Gordon Simpson 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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