Great Portland Estates is closingin on a West End development opportunity and this week announced its first major investment deal for 18 months.
The REIT, which alsothis week announced the departure of property director Rob Noel, is in talks to buy Marcol House and two adjacent buildingson Regent Street, W1, from Dubai-backed P&O Estates.
The site, which P&O had planned to redevelop with Property Merchant Group, has planning consent for a 120,000 sq ft, office-led scheme.
PMG, which has been involved in the site since late 2006, has found a new backer, and is also trying to buy the site. It could fetch at least £30m.
One source said: “It is a classic sign of the market turning when investors buy speculative development sites again.”
In the City, GPE has bought 90 Queen Street, EC4, from fund manager Prudential for £45.8m, an 8.2% yield.
Pru had initially marketed the 68,000 sq ft office, let to Italy’s Intesa Sanpaulo, in the summer for £41.5m – a 9% yield.
GPE raised £166m through a rights issue earlier this year, and the company now has £523m available for acquisitions.
Strutt & Parker is advising GPE in the City; Prudential is advised by Jones Lang LaSalle.
LandSec hire
Rob Noel is leaving Great Portland Estates to join rival Land Securities in January. Noel, 45, will join LandSec’s board as managing director of its £5bn London portfolio.
He replaces Mike Hussey, who left in June.
Noel joined GPE, which has a £1bn London portfolio, in 2002, shortly after Toby Courtauld took over as chief executive. Ben Chambers has been promoted to investment director following Noel’s resignation.
