London-listed Great Portland Estates has acquired 20 St James's Street, SW1 for £42.5 mln (EUR 50 mln). This equates to a capital value of £765 per sq ft, from IVG Development (UK).
London-listed Great Portland Estates has acquired 20 St James's Street, SW1 for £42.5 mln (EUR 50 mln). This equates to a capital value of £765 per sq ft, from IVG Development (UK).
The purchase price reflects a net initial yield on expiry of rent free periods of 4.5%, or 5.2% assuming the 7,000 sq ft (650 m2) currently vacant is let in its existing condition at an average of £49 per sq ft.
20 St James's Street is an eight storey 55,490 sq ft (5,155 m2) building which was redeveloped in the mid-1980's and is now multi-let to 9 tenants producing a gross rent of £2.39 mln per annum.
The offices are let at an average of only £55 per sq ft and the majority of leases expire in 2015 or have breaks in 2012 providing a medium-term refurbishment opportunity. The property is held on a lease from The Crown Estate, expiring in January 2111 at a ground rent of 15% of rents received.
