Great Portland Estates (GPE) has swapped its freehold interest in 79/89 Oxford Street, London W1 with a private investor in return for a new 250-year leasehold interest at both 79/89 Oxford Street and the adjoining property, 73/77 Oxford Street.
Great Portland Estates (GPE) has swapped its freehold interest in 79/89 Oxford Street, London W1 with a private investor in return for a new 250-year leasehold interest at both 79/89 Oxford Street and the adjoining property, 73/77 Oxford Street.
The properties are located in a prominent position at the corner of Oxford Street and Dean Street, adjacent to the Dean Street Crossrail station currently under development, and form a potential redevelopment site of 1740 m2.
The two properties total 7,635 m2 m2 of office and retail accommodation and produce an income of approximately £2.6 mln (EUR 3 mln) per annum from 12 tenants with the majority of leases running to the end of 2014. The new 250 head lease will initially pay a fixed head rent of £620,000 per annum until the first redevelopment, whereupon the ground rent will change to a base rent of £310,000 per annum plus 5% of net rents received. The private investor will also receive a premium of £7.5 mln as part of the swap.
