Great Portland sells central London property to Norwegian sovereign wealth fund

Great Portland Estates has completed the sale of 73/89 Oxford Street and 1 Dean Street in London to Norwegian sovereign wealth fund Norges Bank Real Estate Management for £276.5m.

The price reflects a net initial yield to the buyer of 3.2%.

The scheme is pre-let to New Look Retailers, Benetton and Moneysupermarket.com with a weighted average unexpired lease term of 17 years. The rent on completion will be £9.74m a year.

Chief executive Toby Courtauld said: “Oxford Street has been an exceptional project for us and this sale continues our strategy of recycling capital out of assets where we have created significant value.

“Having secured an attractive planning permission, pre-let the building and enhanced our interest through the purchase of the freehold earlier this year, this sale crystallises a whole life capital return of 75% and an annualised unlevered internal rate of return of 28.4%."