28th Sep 2007 07:05
Great Portland Estates PLC28 September 2007 28 September 2007 Great Portland sells Met Building for £107 million Great Portland Estates plc ("GPE") announces it has agreed to sell the 110,000sq ft Met Building, 22 Percy Street, W1 to Lazari Investments Ltd for £107.0million, representing a net initial yield to the purchaser of 4.1%. Following the acquisition in June 2003 for £16.0 million, GPE undertook acomprehensive refurbishment and extension scheme at a cost of £23.8 million(£28.75 million including capitalised interest). Completed in May 2005, MetBuilding was substantially let by December 2005 to a strong line up of tenantsincluding Publicis subsidiary Zenith Optimedia, construction consultant Gardiner& Theobald, BA Pension Trustees, HSBC and NatWest. The building generates rentalincome of £4.7 million per annum with office rents between £41.50 and £55.00 persq. ft., and the sale price is broadly in line with the March 2007 book value. Commenting on the transaction, Toby Courtauld, GPE's Chief Executive said, "MetBuilding was the first major project completed in our near term developmentprogramme and, in the four years and three months since purchase, has providedthe Group with a post tax return on capital employed of 156%. The successfulsale provides compelling evidence of the building's quality and is in line withour strategy of recycling capital into higher growth segments within ourportfolio". Contacts: Great Portland Estates plcToby Courtauld Chief Executive 020 7647 3042 FinsburyJames Murgatroyd 020 7251 3801Gordon Simpson This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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