Great Portland Estates (GPE) has acquired the head leasehold interests in French Railways House and 50 Jermyn Street in London from Henderson Global Investor's Central London Office Fund 1. The purchase price of £39 mln (EUR 48 mln) reflects a net initial yield of 5.1%.
Great Portland Estates (GPE) has acquired the head leasehold interests in French Railways House and 50 Jermyn Street in London from Henderson Global Investor's Central London Office Fund 1. The purchase price of £39 mln (EUR 48 mln) reflects a net initial yield of 5.1%.
The mixed-use properties were both built in the 1950s and provide 4,650 m2 of office and retail accommodation on an underdeveloped site. The buildings are let to a total of nine tenants and produce a gross rent of £2.12 mln per annum. The properties are held leasehold from The Crown Estate, expiring in 2057 and 2053, respectively.
'The acquisition offers an attractive net initial yield of 5.1% which we expect to be able to grow to around 7% over the next 24 months as a result of imminent lease events and focused asset management,' said Toby Courtauld, CEO of London-listed GPE.
