GPE buys 35 Portman Square for EUR 63m

Great Portland Estates (GPE) has announced the acquisition of 35 Portman Square, London for £53.0 mln (EUR 63 mln) from the shareholders of Portman Square Properties Holdings (PSPH).

The acquisition reflects a net initial yield of 7.7%. The consideration was made up of £31 mln cash and assumed debt of £22 mln.

35 Portman Square is an eight storey, 6,800 m² building fronting Portman Square in the West End occupying an under-developed corner site of around 0.2 of a hectare.

The building was comprehensively refurbished in 2006 to a Grade A standard and subsequently multi-let to 12 tenants producing a net rent of £4.24 mln with a weighted unexpired lease term of 4.3 years. The property is held leasehold from The Portman Estate expiring September 2060 at a fixed rent of £1,000 per annum.