Commercial Property News

Great Portland Estates plc, the central London investor and developer, announced today the acquisition of 35 Portman Square, W1 for £53.0 million from Portman Square Properties Holdings Ltd via a corporate acquisition, and reflecting a net initial yield of 7.7%. The consideration was made up of £31 million cash and assumed debt of £22 million.

 35 Portman Square is an eight storey, 73,000 sq. ft. building fronting Portman Square in the West End occupying an under-developed corner site of around 0.5 acres.  The building was comprehensively refurbished in 2006 to a Grade A standard and subsequently multi-let to 12 tenants producing a net rent of £4.24 million with a weighted unexpired lease term of 4.3 years.  The property is held leasehold from The Portman Estate expiring September 2060 at a fixed rent of £1,000 per annum.

Toby Courtauld, GPE Chief Executive said, "We are delighted to have acquired 35 Portman Square.  This well located Grade A office building offers an attractive running yield and, in the fullness of time, a first class development opportunity.  In the meantime, the building is fully let at sensible rents and offers some exciting asset management opportunities."