UK REIT Great Portland Estates has sold a London mixed-use scheme, 30 Broadwick Street, to a client of Savills Investment Management for £190 mln (€214 mln).
The price, which equates to £186 mln (€209 mln) after deductions for tenant incentives, is marginally ahead of the September 2017 book value, reflecting a headline net initial yield of 4.0% and a capital value of £2,015 (€2,266) per ft2.
'The sale of 30 Broadwick Street is the final achievement in an outstanding development project for GPE,' commented Robin Matthews, investment director of GPE. 'Having secured planning permission in 2014, GPE commenced development speculatively in 2015 recognising the quality of the location and future demand for high quality office space in Soho. The property is now 100% let and the sale continues our strategy of recycling capital out of mature assets.'
The eight storey building, completed in late 2016, comprises 94,300 ft2 (8,760 m2) of grade A office, retail and restaurant accommodation. The building is fully let, with the office tenants including Boston Consulting Group, Exponent Private Equity, Jagex, and EQT Partners UK Advisors.
The retail tenants include Nespresso, Estee Lauder Cosmetics (trading as Bobbi Brown) and OVO, with the restaurant let to The Ivy Brasserie. The total contracted rental income is £8.15 mln per annum and current weighted unexpired lease term is approximately 10 years.
