Great Portland Estates completes two property deals with Deka
Great Portland Estates has sold its 33 Margaret Street property, but picked up 50 Finsbury Square in two deals with Deka Immobilien Investment.
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The FTSE 250 property investment firm said it sold the site on the corner of Margaret Street and Regent Street to Deka-Immobilien Europa for £216.25m, reflecting a net initial yield of 3.30%.
The building, which was acquired by Great Portland Estates in 2009 and developed in 2012, brings in a total of £7.552m in rent per year.
The company also purchased Bloomberg’s London headquarters at 50 Finsbury Square from Deka-Immobilien Global for £119m, reflecting a net initial yield of 5.32% after costs.
The site, which is freehold, was developed in 2000 and is predominately comprised of offices which are fully let to the business media and data organisation until June 2020.
Including four retail units on the site, the annual rent is £6.631m.
GPE chief executive Toby Courtauld is delighted with the two deals.
“The sale of 33 Margaret Street is the culmination of six years' of work by the team at GPE, which has seen the property acquired, consented, built, leased and now sold crystallising a healthy IRR,” he said.
“50 Finsbury Square is, by contrast, an asset that will benefit significantly from GPE's repositioning once Bloomberg vacate, as expected.
“In addition, the exciting transformation of this area resulting from Crossrail, and the continued growth in the Creative/TMT sector, will provide a further catalyst for growth.”