Great Portland Estate (GPE) announced on Tuesday that The Great Victoria Partnership (No 2), a joint venture with Liverpool Victoria Friendly Society, has agreed to sell the 5,600 m[sup]2[/sup] retail block at 208-222 Regent Street in London to an unnamed private purchaser for £96.6mln (EUR 122.5mln). GPE said the transaction volume, which reflects an initial yield of 4,5%, is broadly in line with the book value of the property in March 2008.

Great Portland Estate (GPE) announced on Tuesday that The Great Victoria Partnership (No 2), a joint venture with Liverpool Victoria Friendly Society, has agreed to sell the 5,600 m2 retail block at 208-222 Regent Street in London to an unnamed private purchaser for £96.6mln (EUR 122.5mln). GPE said the transaction volume, which reflects an initial yield of 4,5%, is broadly in line with the book value of the property in March 2008.

The deal is subject to consent of The Crown Estate, the property portfolio manager associated with the British monarchy. The proceeds will be used to repay GVP2's non recourse loan of £35.4mln before distributing the balance to the joint venture's partners.

GPE, a central London property investment and development company, formed The Great Victoria Partnership (No 2) to acquire 208/222 Regent Street for £53.7mln in April 2005. The majority of the space was occupied by UK retail property group Liberty. The headlease was re-geared with the Crown Estate at a cost of £6mln, and in 2007 GVP2 completed a phased reconfiguration of the retail space - much of which was occupied by Liberty - for £6.6mln. Three new flagship stores were created and subsequently let to COS, the new concept brand of H&M; Desigual, the Spanish retailer; and GAP.

MWB, the serviced office provider, is the main occupier of the of the office component of the property. GPE said the building produces a net rent of £4.35mln per annum having deducted ground rent payable to the Crown Estate until March 2009.