GPE buy in Portman Square

22/06/2010

Advised by H2SO, Great Portland Estates has acquired 35 Portman Square, W1 for £53m from the shareholders of Portman Square Properties Holdings Ltd at a net initial yield of 7.7%.

35 Portman Square is an eight storey, 73,000-sq ft building fronting Portman Square in the West End occupying an under-developed corner site of around 0.5 acres. The building was comprehensively refurbished in 2006 to a Grade A standard and subsequently multi-let to 12 tenants producing a net rent of £4.24m with a weighted unexpired lease term of 4.3 years. The property is held leasehold from The Portman Estate expiring September 2060 at a fixed rent of £1,000 per annum.

Toby Courtauld, GPE Chief Executive said: "We are delighted to have acquired 35 Portman Square. This well located Grade A office building offers an attractive running yield and, in the fullness of time, a first class development opportunity. In the meantime, the building is fully let at sensible rents and offers some exciting asset management opportunities".