Great Portland Estates (GPE) is selling the 110,000 square foot (10,219 m2) Met Building to Lazari Investments for £107 mln (EUR 153 mln). The sales price represents a net initial yield to the purchaser of 4.1%. Great Portland said the transaction price is in line with the property's book value in March this year. Great Portland acquired the building located at 22 Percy Street in June 2003 for £16 mln and invested a total of £28.75 mln in its refurbishment and expansion.
Great Portland Estates (GPE) is selling the 110,000 square foot (10,219 m2) Met Building to Lazari Investments for £107 mln (EUR 153 mln). The sales price represents a net initial yield to the purchaser of 4.1%. Great Portland said the transaction price is in line with the property's book value in March this year. Great Portland acquired the building located at 22 Percy Street in June 2003 for £16 mln and invested a total of £28.75 mln in its refurbishment and expansion.
The Central London property investment company said the refurbishment project was completed in May 2005 and the building was substantially let by December of that year to a range of tenants, including Publicis subsidiary Zenith Optimedia, construction consultant Gardiner & Theobald, BA Pension Trustees, HSBC and Natwest. The building generates annual rental income of £4.7 mln - with office rents of between £41.50 and £55.00 per sq ft.
Great Portland chief executive Toby Courtauld said in a statement that since the acquisition in 2003, the property had provided the company with a post tax return on capital employed of 156%. 'The successful sale provides compelling evidence of the building's quality and is in line with our strategy of recycling capital into higher growth segments within our portfolio,' he said.
