Great Portland Estates (GPE) has bought 79-89 Oxford Street, London W1, from German investor Otto Wisskirchen for £18.75m. The sale represents an initial yield of 6.5%.
The 3,902 sq m (42,000 sq ft) building, part of which fronts Dean Street, was put under offer in April (see Estates Gazette 18/04/98).
Tenants of the property’s 1,394 sq m (15,000 sq ft) of retail spaceinclude Sock Shop and Pizza Hut. The offices above are let to Arcadia (formerly the Burton Group) and serviced offices provider Gainsborough. The investment generates £1.27m pa.
GPE’s deputy managing director Patrick Hall said that the company believes there is considerable scope for improving the propertyand plans to increase tenants’ rents. Arcadia currently pays just under £269 per sq m (£25 per sq ft) while Gainsborough pays under £161 per sq m (£15 per sq ft).
Leases at two of the block’s smaller shops expire in 2002 and Hall said that the units would probably be combined when that happens. The remaining leases run until 2009.
Great Portland was advised by Hillier Parker while DTZ Debenham Thorpe acted for Wisskirchen.
EGi News 27/05/98
