Great Portland Estates has exchanged contracts to sell a central London office let to Kurt Geiger for £64.5m.
The sale of 24/25 Britton Street, which is located in the City fringe area, to an overseas investor reflects a net initial yield of 4.07% and a capital value of £1,255/sq ft.
It was also sold at a premium of 6.2% to the September 2019 valuation.
The office element of the building, which was comprehensively refurbished by GPE in 2011 to provide 49,900 sq ft of accommodation, is let to Kurt Geiger until 2035. The total contracted rental income is £2.8m a year, equating to £55/sq ft overall (reflecting a minimum uplift at review of £65/sq ft on the best office space). The current weighted unexpired lease term is approximately 14.8 years.
The sale is expected to complete on 22 January 2020.
Toby Courtauld, chief executive said: “The sale of 24/25 Britton Street concludes a successful business plan for GPE. Having refurbished and pre-let the property to Kurt Geiger in 2011, we subsequently re-geared the lease in 2019 before marketing the property for sale. The disposal is consistent with our strategy of recycling capital out of mature assets.”
GPOR : Great Portland Estates sells Kurt Geiger-let office