Great Portland Estates has taken over Starwood Capital’s interest in their joint venture the Great Star Partnership.
The UK property company will pay Starwood £61.4m for the interest in the business and will redeem 100% of the £73.1m in outstanding debt secured against the jv’s properties.
This overall cost to GPE of £190.6m is broadly in line with the jv’s asset valuation at the end of 2014 and represents an initial yield of 5.3%.
As a result of the agreement GPE will take full control of the leasehold interests in City Tower at 40 Basinghall Street, EC2, and the adjacent City Place at 55 Basinghall Street.
The two properties total 313,000 sq ft and have a rent roll of £10.2m, an average of £44 per sq ft. Around 55,000 sq ft is currently or imminently vacant.
