24th Apr 2015 06:55
LONDON (Alliance News) - Great Portland Estates PLC on Friday said it has reached a deal with investment company Starwood Capital Group to acquire full ownership of the pair's The Great Star Partnership joint venture for GBP61.4 million.
On completion, FTSE 250-listed property company Great Portland will redeem the GBP73.1 million in outstanding debt secured against the properties owned by the joint venture.
The acquisition will give Great Portland full ownership of the leasehold interests in the City Tower and City Place House properties in the City of London. The buildings provide 313,000 square feet of flexible office space and are let at a contracted rent roll, after head rent, of GBP10.2 million.
The acquisition price equates to GBP608 per square foot and a yield of 5.3% on contracted rent roll, or 4.8% after deducting current void costs on the vacant space.
"We are delighted to have acquired Starwood Capital's interest in the GSP, giving us full ownership of City Tower and City Place House, after a successful period of joint venture. We look forward to unlocking further value from both these core City assets, which continue to provide numerous opportunities for us to drive returns" said Great Portland Chief Executive Toby Courtauld.
By Sam Unsted; [email protected]; @SamUAtAlliance
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