27th Feb 2006 07:01
Great Portland Estates PLC27 February 2006 27 February 2006 Great Portland Estates takes profits north of Oxford Street Great Portland Estates plc ("GPE") announces three disposals north of OxfordStreet for a total consideration of £33.1 million, 22.5% higher than theirSeptember 2005 book value (adjusted for capital expenditure). At 60/62 Margaret Street, W1, GPE has forward sold its long leasehold interestin this 20,100 sq ft office and showroom refurbishment to clients of ArlingtonProperty Investors for £12.7 million. Purchased by the Group in January 2005 for£6.1 million including costs, the property is currently vacant and will be fullyrefurbished by GPE under a development agreement with the purchaser for a totalfurther cost of approximately £3.5 million. Whilst construction cost riskremains with GPE, all other risks, including void and letting risk have beentransferred to the purchaser. The Group's analysis of the purchase price assumesa letting at £42.50 per sq ft on the office space, a blended exit yield of 5%and completion of the refurbishment works by December 2006. At Evelyn House, 142/144 New Cavendish Street, W1, contracts have been exchangedto sell this 11,700 sq ft four storey office and showroom property for £5.8million, 22.5% ahead of the September valuation. The basement, ground and firstfloors are vacant and the second to fourth floors are let on three leases allexpiring in June 2010 with tenants' break options in June 2007. The propertycurrently produces a total rent of £172,500 per annum, representing a netinitial yield of 2.8%. At 22/28 Eastcastle Street, W1, GPE has sold four adjoining showroom and officeproperties, totaling 33,000 sq ft for £14.6 million, reflecting a net initialyield of 2.1%. The properties are multi-let to ten tenants on leases with anaverage unexpired lease term of under 1.5 years and there is around 16,300 sq ftof vacant space. The price paid reflects a 23.7% premium to the September 2005valuation. Both Evelyn House and the Eastcastle Street properties were held by the groupprimarily as potential residential conversions to satisfy planning agreementswith the local planning authorities. Since planning consents have now beenobtained for all the group's major office developments north of Oxford Street(190 Great Portland Street, Knighton House and the Titchmor development) thisresidential currency was no longer required. Commenting on the transactions, Toby Courtauld, GPE's Chief Executive said,"This is good business for GPE. Having executed our strategies for theseproperties and following the strong yield compression we have seen over the pastsix months, we can now recycle the capital to better use elsewhere". Contacts: Great Portland Estates plcToby Courtauld Chief Executive 020 7647 2042Robert Noel Property Director 020 7647 3043 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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