UK REIT Great Portland Estates (GPE) has sold the London office project, 55 Wells Street, W1 to an overseas investor for £65.46 mln (€74 mln), equating to £64.60 mln after deduction of expenses.
The headline price reflects a net initial yield of 3.99% and a capital value of £1,674 per ft2. Completion is scheduled for 19 October 2018.
'The sale of 55 Wells Street crystallises another successful development for GPE, and is consistent with our strategy of recycling capital out of mature assets,' said Toby Courtauld, chief executive of GPE.
The BREEAM Excellent building was developed by GPE in 2017 and comprises 39,095 ft2 (3,632 m2) of office accommodation arranged over six upper floors, a ground floor restaurant unit and D1 accommodation at lower ground floor.
The property benefits from a large communal roof terrace and two private terraces on the first and sixth floors. The offices are let to Williams Lea Limited and Synova Capital, and the ground floor is home to Yotam Ottolenghi's new flagship restaurant ROVI.
According to GPE, the total income is £2,790,618 per annum inclusive of vendor top-ups, reflecting £82.80 per ft2 overall, while the weighted average unexpired lease term is 10 years.
