5th May 2005 07:00
Great Portland Estates PLC05 May 2005 Great Portland sells in Drury Lane and buys in Noho Great Portland Estates plc ("GPE") announces the sale of its freehold interestin 55 Drury Lane, London, WC2 to Arlington Property Investors for £16.75million. The price represents a 22% premium to the book value at 30 September2004. The property was constructed by GPE in the early 90's and comprises 28,000 sq ftof studio and office space and a number of residential flats let on long leases.The current rent receivable is £950,000 per annum, showing the purchaser a netinitial yield of 5.4% after purchase costs. Weighted by rent, the averageunexpired lease length is 6.4 years. In a separate transaction GPE announces the acquisition of 60/62 MargaretStreet, London W1 from a private vendor for £5.75 million. The 21,600 sq ftoffice building is vacant and GPE plans to carry out a comprehensiverefurbishment delivering a high quality office building during the second halfof 2006. Robert Noel, Property Director of GPE said; "Over the last two years we haveactively managed the occupational tenancies at 55 Drury Lane to optimise itscapital value and have now taken advantage of the huge investor appetite forthis type of asset as we believe we can use the proceeds more profitablyelsewhere. At a cost of £266 per sq ft, Margaret Street represents excellentvalue. There is good demand for high quality refurbished floor plates of thissize in the West End with very limited supply. We believe refurbishment will bewell timed." Contacts: Great Portland Estates plcToby 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:
GPOR.L