Great Portland Estates has sold a 50% stake in its Hanover Square Estate to the Hong Kong Monetary Authority for £202m.
The 50:50 GHS Limited Partnership will own and develop the West End development site, earmarked for office, retail and residential schemes, that is to be completed by 2018.
The sale will result in a small increase to the group’s most recently published NAV per share of 464p at the end of June. GPE will act as both asset and development manager to GHS.
Part of the site is owned by Crossrail, which is developing the eastern ticket hall of the Bond Street Crossrail station.
GHS has an agreement to buy long-leasehold interests in this part of the site once Crossrail has completed construction of the station, currently expected for 2016.
GPE was granted planning permission in 2011 for a 208,000 sq ft redevelopment incorporating the new Crossrail station. Once completed, the scheme will provide 163,500 sq ft of Grade A office accommodation across three buildings, the majority of which will be in a new Grade A building above the Crossrail station, fronting Hanover Square.
In addition, the development will deliver 32,700 sq ft of prime retail and restaurant space predominately fronting New Bond Street, and six residential units totalling 11,800 sq ft at the junction of New Bond Street and Brook Street.
The entire development has been planned around a large new public piazza, accessible from New Bond Street, Hanover Square, Brook Street and Tenterden Street.
The site was assembled by GPE in a series of acquisitions between mid-2006 and mid-2007.
Following site assembly, GPE worked closely with Crossrail and Westminster to enhance the potential of the site, the station and the public realm and, in March 2011, signed a revised agreement with Crossrail to this effect. The scheme subsequently secured planning permission.
GPE chief executive Toby Courtauld said: “Our Hanover Square holdings represent one of the most exciting development opportunities in the West End and our partnering with an organisation of the calibre of HKMA is a strong endorsement of this project’s potential. We look forward to working with the HKMA team to deliver this world-class development.”
CBRE advised GPE.
bridget.oconnell@estatesgazette.com
