Business
GPE Acquires 73/77 Oxford Street Ltd
GPE Acquires 73/77 Oxford Street Ltd.
About this update from Great Portland Estates Plc
[{"type":"text","content":"\n \nRNS Number : 1984Z Great Portland Estates PLC 25 May 2016 \n\n25 May 2016\nGPE Acquires 73/77 Oxford Street Ltd \n \nGreat Portland Estates plc (\"GPE\") has acquired the entire issued share capital of 73/77 Oxford Street Ltd (\"The Company\") for £71.0 million. The Company is debt free and its only assets are three properties in London's West End, as follows:\n \n· 73/89 Oxford Street - The freehold interest in GPE's existing prime development at the east end of Oxford Street which is under construction and comprises 90,000 sq. ft. of retail and office accommodation. Before acquisition, GPE had a 250-year head lease from February 2011, geared to 10% of rents received following practical completion of the scheme; the head rent prior to PC is £620,000 per annum. \n \n· 95 New Bond Street - The virtual freehold interest in a retail and office property of 4,800 sq. ft., situated at the corner of New Bond Street and Blenheim Street. The property comprises retail on basement to second floor with self-contained offices on third and fourth floors. \n \n· 96 New Bond Street - A head leasehold interest which expires in 2045 (29.6 years unexpired) at a fixed ground rent of £2,250 per annum. The property extends to 4,800 sq. ft. of retail accommodation. 95 & 96 New Bond Street are let together on a single lease to Victorinox Ltd for a total rent of £880,000 per annum which reflects around £400 Zone A, significantly below CBRE's current estimate of £600 Zone A. \n \nThe gross capital commitment is £72.3 million, which reflects a day one yield of 2.1% increasing to 3.2% once reversions have been captured, based on CBRE's current view of rental value.\n \nToby Courtauld, GPE Chief Executive said \"we have worked closely with the freeholder of 73/89 Oxford Street since agreeing the original transaction with them in 2011, enabling us to unlock an exciting development opportunity at the eastern end of Oxford Street, which we commenced in January 2015. With practical completion due in May 2017, the retail accommodation has already been fully prelet and record retail rents achieved in excess of £700 Zone A. By acquiring the freehold interest, we have created a 100% prime investment asset, adj...