Great Portland Estates has exchanged contracts on two separate deals with Deka Immobilien which will see the REIT exchange a West End trophy for a City development opportunity.
Deka has paid £216.3m for 33 Margaret Street, W1, headquarters to Savills, which GPE developed in 2012.
The 103,700 sq ft office led development generates a total rent of £7.5m.
Seperately GPE has bought 50 Finsbury Square, EC2, from Deka for £119m, a 5.32% yield and a capital value of £941 per sq ft.
The 126,500 sq ft freehold is fully let to Bloomberg until June 2020 at a rent of £5.7m pa.
Toby Courtauld, GPE Chief Executive said “We have a good working relationship with Deka and are delighted to have exchanged these two transactions with them.
“The sale of 33 Margaret Street is the culmination of six years’ of work by the team at GPE, which has seen the property acquired, consented, built, leased and now sold crystallising a healthy IRR. 50 Finsbury Square is, by contrast, an asset that will benefit significantly from GPE’s repositioning once Bloomberg vacate, as expected. In addition, the exciting transformation of this area resulting from Crossrail, and the continued growth in the Creative/TMT sector, will provide a further catalyst for growth.”
Savills and CBRE advise Deka.
