17th Oct 2005 07:00
Great Portland Estates PLC17 October 2005 17 October 2005 Great Portland buys on Oxford Street and sells from Great Victoria LP Great Portland Estates plc ("GPE") announces that it has exchanged contracts topurchase 184/190 Oxford Street and 28/30 Market Place, London, W1 from PearlAssurance for £23 million. The property is leasehold, held on a 104 year unexpired lease at a fixed groundrent of £972 per annum. It comprises 9,124 sq ft of prime ground floor andbasement retail space and 16,756 sq ft of offices over first to fifth floors.The retail accommodation is let to Office Holdings Ltd and C&J Clark on leasesexpiring in 2012/2013 whilst the office floors are multi-let. The propertyproduces rental income of £1.34 million per annum and has a rental value of £1.6 million per annum. In an unrelated transaction, GPE announces that its joint venture with LiverpoolVictoria Friendly Society, The Great Victoria Partnership ("GVP") has sold 81 & 82 Dean Street to Schroders Exempt Property Unit Trust ("SEPUT") for £20.2 million, a slight premium to the March 2005 book value. The price reflectsan initial yield of 6.6%, having allowed for purchasers' costs. 81 Dean Street is let to TWBA (an Omnicom subsidiary) until 2014 at £510,000 perannum (£38 psf). 82 Dean Street is also let to TWBA although only until 2010 at£890,000 per annum (£44.00 psf). Both buildings were last refurbished in the1980's and taken together, at March 2005, were 26% overrented. Following the disposal GVP has gross assets in excess of £200 million includingthe Mount Royal block on Oxford Street, The Liberty block on Regent Street andLiberty International Plc's headquarters in Victoria. Toby Courtauld, Chief Executive of GPE said; "the purchase of 184/190 OxfordStreet and 28/30 Market Place gives us significant frontage to an improvingpitch on Oxford Street, and adjoins our holdings immediately to the north inMarket Place, an area that's in the process of improvement. The retail rents arereversionary, at below £400 Zone A, while the offices are fully let at lowrents, and through landlord breaks in 2008 we have the opportunity to carry outa significant refurbishment to upgrade the quality of the accommodation". "At Dean Street, the partnership has capitalised on the strength of theinvestment market to dispose of an overrented asset with limited value angles toexploit for a healthy price". Contacts: Great Portland Estates plc Toby Courtauld Chief Executive 020 7612 1442Robert Noel Property Director 020 7612 1443 FinsburyEdward Orlebar 020 7251 3801 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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