Some of the UK’s largest property companies are gearing up to put assets and development opportunities on the market as they seek to take advantage of the record low yields in London.
Great Portland Estates has appointed GM Real Estate and Strutt & Parker to forward sell its 150,000 sq ft redevelopment of 148 Old Street, EC1, for which it received planning in April.
The structure of the deal echoes that utilised by Helical Bar and Baupost at Barts Square, EC1, were Ashby Capital is under offer to forward purchase the office element of the mixed-use scheme.
It will allow GPE to realise an attractive return on the scheme in today’s strong market while retaining an interest which will give it a share of any future growth.
Other listed London developers are also readying assets for sale to take advantage of market conditions. Land Securities is considering bringing Holborn Gate at 330 High Holborn and 26 Southampton Buildings, WC1, to market later this year.
The freehold building totals around 154,000 sq ft, of which 138,000 sq ft is office space. It is expected to attract bids of around £150m.
LandSec is in the process of finishing a partial refurbishment of the building, reconfiguring its main entrance and modernising 43,000 sq ft of office space.
The capital is likely to be recycled into the REIT’s 1.1m sq ft speculative development programme, of which 322,000 sq ft is currently let or under offer.
British Land has also taken advantage of demand for London offices in recent weeks, selling 39 Victoria Street, SW1, to Singaporean investor Ho Bee Land for £144m last month.
