Great Portland Estates has exchanged contracts to sell its 151-year leasehold interest in 12/14 New Fetter Lane, EC4, to TIAA Henderson Real Estate for £165.8m – a 4.5% yield.
The 142,500 sq ft development, which is under construction, was prelet to Bird & Bird last year on a 20.25-year lease which commences on completion, currently expected in Q4 2015.
TIAA Henderson is buying the developemt on behalf of TIAA CREF.
The deal is subject to the consent of freeholder the City Corporation.
Toby Courtauld said, “Having secured an attractive planning permission, regeared the headlease with the City Corporation and fully prelet the building, this sale crystallises a return on capital since committing to the scheme of 82.7% and an unlevered IRR of 55.1%.”
GM Real Estate advised GPE; JLL advised TIAA Henderson Real Estate.
