26th Jan 2005 07:00
Great Portland Estates PLC26 January 2005 26 January 2005 Great Portland bolsters income at Mount Royal through acquisition Great Portland Estates plc ("GPE") announces the acquisition of the Prudential'sleasehold interest at Mount Royal, 508/540 Oxford Street, W1 for £10.9 millionby its newly created joint venture with Liverpool Victoria Friendly Society, theGreat Victoria Limited Partnership ("GVLP"). The 7.5 year leasehold interest generates a net income of £1.95 million perannum, raising the income receivable by GVLP at Mount Royal from £3.7 million to£5.64 million and the net yield from 4.4% to 5.9%. The Mount Royal blockcomprises 88,500 sq ft of retail space and has a rental value of over £7.0million. Robert Noel, Property Director, said: "Mount Royal was acquired with a clearplan to exploit asset management initiatives and we are pleased to have beenable to buy the Prudential interest. In addition to boosting the income return,the acquisition releases significant marriage value and improves GVLP's controlof the block". Contacts: Great Portland Estates plc Toby Courtauld, Chief Executive 020 7612 1442Robert Noel, Property Director 020 7612 1443 Finsbury Edward Orlebar 020 7251 3801 Notes for editors GVLP was formed as a joint venture between GPE and Liverpool Victoria FriendlySociety ("LVFS") in November 2004 to own four central London buildings includingthe Mount Royal block which it acquired from Quintain Estates & Development PLCfor £80 million. At inception, the joint venture had assets with an approximatevalue of £122.7 million, with each partner contributing £33.5 million of equity,financed through cash and property contributions. Properties contributed by GPE were 81 and 82 Dean Street, London W1, comprising32,800 sq ft of offices, let to Omnicom subsidiary TBWA Group UK Limited andproducing a current annual net income of £1.4 million. LVFS contributed 40-48Broadway and 1/11 Carteret Street, London SW1 and Verulam Gardens, 70 Grays InnRoad, London WC1. Broadway and Carteret Street comprise 60,000 sq ft of officesoccupied by Liberty International plc as their headquarters and the YouthJustice Board. Verulam Gardens is a 34,000 sq ft office building let to patentagents Boult Wade Tennant and the first Secretary of State. The current combinedannual net income of the LVFS properties is £1.8 million. GPE has been retained by the joint venture to carry out asset, investment anddevelopment management services on its behalf. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
GPOR.L