Property Swap & Acquisition
Great Portland Estates PLC
19 October 2006
Great Portland expands in Hanover Square and on Oxford Street
19 October 2006
Great Portland Estates plc ('GPE') announces, in separate transactions;
• A West End property swap with The Prudential Assurance Company Ltd
('Prudential') with a combined value of £86.9 million. GPE has bought 65/71
New Bond Street, W1 and 192/194 Oxford Street, W1 from Prudential for a
total of £51.6 million. GPE has sold 293/295 Oxford Street and 14 Hanover
Square, W1 to Prudential for £35.3 million. The balance of £16.3 million
will be settled in cash by GPE.
• The acquisition of 20 Hanover Square from a private investor for
£15.0 million.
Put together with recent acquisitions, these transactions provide GPE with two
major West End holdings as illustrated on the attached map.
http://www.rns-pdf.londonstockexchange.com/rns/6922k_-2006-10-18.pdf
In the property swap, the two acquired holdings together provide 57,400 sq ft of
which 27,300 sq ft is retail space with 30,100 sq ft being office space. The
properties are multi-let and produce a current rental income of £2.6 million per
annum with a rental value estimated at £2.9 million per annum. The property sold
(293/295 Oxford Street and 14 Hanover Square) comprises 26,600 sq ft of which
7,100 sq ft is retail space and 19,500 sq ft is office space and adjoins an
existing Prudential holding. The building was refurbished by GPE earlier this
year and the office lease restructured with solicitors Harbottle & Lewis
increasing the rent and extending the lease term certain to 2017. The office and
four retail tenants produce a current rental income of £1.7 million per annum
with a rental value estimated at £1.8 million per annum.
20 Hanover Square comprises 23,100 sq ft of offices let to Knight Frank at an
annual rent of £0.5 million per annum with a rental value estimated at £0.9
million per annum.
Together with 65/71 New Bond Street and the adjoining properties at 18/19
Hanover Square, purchased in August, GPE has now assembled an important 1.2 acre
land holding bounded by Hanover Square, Tenterden Street and New Bond Street
providing the Group with a healthy income return and multiple future development
opportunities.
The purchase of 192/194 Oxford Street combines with 184/190 Oxford Street
acquired in September last year to create a wholly owned island site in a
resurgent section of this important retailing pitch.
Toby Courtauld, Chief Executive of GPE, said: 'Our swap transaction with The
Prudential completes the assembly of two prime West End holdings. Both sites
offer good scale, are located in rapidly improving micro-locations and have
plenty of interesting opportunities to explore. The sale of 293/295 Oxford
Street and 14 Hanover Square is in line with our strategy of recycling capital
out of mature assets'.
PRUPIM, one of the leading real estate investment managers in the UK,
facilitated the deal on behalf of its client, The Prudential Assurance Company.
John Wythe, Head of Life Funds for PRUPIM comments: 'This deal makes sense for
all. In each case the two companies have had adjoining ownerships and see
benefit in rationalizing and consolidating these. In our client's case, they now
own an outstanding site comprising 293/297 Oxford Street and the whole of the
west side of Harewood Place and numbers 14 and 15 Hanover Square.'
Contacts:
Toby Courtauld Chief Executive Great Portland Estates plc 020 7647 3042
Robert Noel Property Director Great Portland Estates plc 020 7647 3043
John Wythe Head of Life Funds PRUPIM 020 7548 6976
Finsbury
James Murgatroyd 020 7251 3801
Gordon Simpson
This information is provided by RNS
The company news service from the London Stock Exchange
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