Great Portland sells property to Commerz Real for EUR 100m

London-based property investor and developer Great Portland Estates (GPE) said on Wednesday that The Great Wigmore Partnership, its 50:50 joint venture with Scottish Widows, has sold 180 Great Portland Street, W1 to German investor Commerz Real for £79.5 mln (EUR 100 mln), around 4% below the June 2008 valuation. Commerz Real is contributing the property to its hausInvest europa real estate fund.

The 105,000 sq ft (9,800 m2) retail and office building was substantially rebuilt in 2006 and let during the course of 2007 at an average office rent of £60.15 per sq ft. The net initial yield to the purchaser on expiry of the remaining rent free periods will be 6.25%.

Toby Courtauld, Chief Executive of GPE said, '180 Great Portland Street has been a successful development for us. It was completed in January 2007, the offices 100% let within 12 months at good rents and it provided the group with a post tax ungeared IRR of almost 27% per annum. The sale of this stabilised asset boosts our liquid resources to over £320 mln and maintains comfortable leverage ratios.'