23rd Dec 2020 08:04
(Alliance News) - British Land Co PLC on Wednesday said it has agreed the sale of a 75% interest in a portfolio of three buildings in London's West End to Allianz Real Estate acting on behalf of several Allianz group companies, for GBP401 million.
The transaction represents a blended net initial yield of 4.3%, a premium to September book value and is expected to complete in January.
The three buildings are 10 Portman Square, Marble Arch House and York House, all of which are in Marylebone, London. The assets had a combined valuation of GBP508 million at September 30 and the total net rent attributable is GBP21.1 million, British Land said.
The FTSE 100-listed property investor and developer will form a new joint venture with Allianz, with British Land's interest at 25% and Allianz's at 75%. British Land will continue to manage all three buildings and will receive an asset management fee.
The sale brings total asset disposals to date in the current financial year to GBP1.1 billion.
"Having delivered outstanding office space and attracted high quality occupiers, we are thrilled to have secured Allianz Real Estate as our partner and crystallised significant value for shareholders. This transaction demonstrates that like us, investors remain confident in the long term prospects for high quality assets in prime London locations," said Chief Executive Simon Carter.
By Lucy Heming; [email protected]
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