Great Portland Estates has exchanged contracts to sell 24/25 Britton Street, EC1, for £64.5m to an overseas investor.
The price reflects a net initial yield of 4.07% and a capital value of £1,255 per sq ft.
The 49,900 sq ft office space in the building is leased to shoe retailer Kurt Geiger on a re-geared lease extended to 2035.
There are also two retail units fronting Britton Street totalling 1,500 sq ft.
Total rental income from the property is £2.81m per year inclusive of vendor top-ups, which will slightly lower the sale prince to £64.06m.
This rental income equates to £55 per sq ft on average at the property. The current weighted unexpired lease term is approximately 14.8 years to the earlier of expiries or breaks.
Toby Courtauld, chief executive at GPE, said: “The sale of 24/25 Britton Street concludes a successful business plan for GPE. Having refurbished and prelet the property to Kurt Geiger in 2011, we subsequently re-geared the lease in 2019 before marketing the property for sale. The disposal is consistent with our strategy of recycling capital out of mature assets”.
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