GPE JVs acquire £35m of assets in London

UK property investment company Great Portland Estates (GPE) said on Monday that two of its joint ventures have exchanged contracts to acquire two long leasehold properties on Regent Street, London, W1 from clients of F&C REIT. The transaction price amounts to a total of £35 mln (EUR 39 mln).

The Great Ropemaker Partnership (GRP), a 50/50 joint venture with BP Pension Fund, has acquired the long leasehold interest of a 5,200 m² office building for £27 mln, reflecting a net initial yield of 7.2%. The property is let in its entirety to Austin Reed until 2027 paying £2.45 mln per annum (gross).

The Great Capital Partnership (GCP), a 50/50 joint venture with Liberty International subsidiary's Capital and Counties, has acquired the long leasehold interest of Kingsland House for £8 mln, reflecting a net initial yield of 5.00% with three vacant office suites. The property extends to 8,800 sq ft, produces £0.5 mln per annum and is let to seven tenants with expiries between 2010 and 2027.

'At the Austin Reed store, we have acquired a prime asset giving us a variety of opportunities to enhance value through, for example, lease restructuring, reconfiguration and in the longer term, potentially wholesale redevelopment,' said Toby Courtauld, GPE Chief Executive.