UK REIT Great Portland Estates (GPE), which specialises in London offices, has acquired two buildings and a number of development plots in East London for £49.6 mln (€57 mln).
The assets, which are located in a single block btween Aldgate and Whitechapel, comprise around 1.1 acres (0.5 hectare) of land close to the new Whitechapel Crossrail Station (pictured), due to open in 2019. The site is understood to present significant development and repositioning opportunities.
The site includes two multi-let office and hotel properties, dubbed Cityside and Challenger respectively, covering 110,000 ft2 (10,220 m2). There is also a large car parking area to the rear.
The acquisition represents GPE's most easterly purchase to date, as the West End specialist 'eyes repositioning and refurbishment opportunities beyond its traditional focus', according to analyst Goodbody. Rents in Whitechapel are currently between £35-40 per ft2, says Carter Jonas, but could rise to £45-50 per ft2 for refurbished space once the new rail link opens.
Planning consent has already been awarded to grow Cityside House by some 54% in terms of floor area. According to Goodbody, GPE are targeting rents of £47 per ft2 once the property is refurbished and extended.
