Great Portland Estates to sell freehold of 50 Finsbury Square

Great Portland said the sale price reflected a topped-up net initial yield of 3.85% and a capital value of £1,471 per square foot, broadly in line with the March book value after adjusting for estimated capex to complete.

The FTSE 250-listed group said it will retain responsibility for delivering the development with the completion of the sale, expected to take place in the first quarter of 2023. Net proceeds will be initially used to pay down the group's revolving credit facility and will reduce its loan value from 22.2% to 16.8%, based on a pro-forma June balance sheet.

Chief executive Toby Courtauld said "In 50 Finsbury Square, we have created an exceptional home for Inmarsat, not least given the sustainability credentials our refurbishment will deliver.

"The sale is consistent with our strategy of recycling capital out of mature assets to be utilised in our many other development opportunities".

Reporting by Iain Gilbert at Sharecast.com