London investment and development firm Great Portland Estates (GPE) has purchased a significant London-based six-storey office and residential building for Â£60 million.
A deal has been made between GPE and the Minerva Trust, SREIT Property Limited and Clerical Medial Managed Funds that reflects a capital value of around Â£579 per sq. ft.
The firm believes the London office space of Minerva House is located in a prime area for future development.
Minerva House, which is located next to Southwark Cathedral, stretches from the St Mary Overie Dock area all the way towards Cathedral Square.
In total the building offers around 103,686 sq. ft. at its location on the South Bank of the River Thames.
Chief executive of Great Portland Estates, Toby Courtauld, said: “We are delighted to have acquired Minerva House, the first purchase following our Â£140 million equity placing announced less than one month ago.
“This property meets our objectives of an accretive initial yield with an attractive prospective total return due to its low rents and multiple refurbishment possibilities.Â Longer term, this river-fronting site provides us with significant development potential.”
Currently the London offices are leased out to two tenants, Winkworth Sherwood and also Ipsos Mori UK – with the office lease due to expire 2021 and 2022 respectively. Rent reviews are set for 2016 and 2017.
The firm is currently in the process of developing a 20-storey block at 240 Blackfriars Road. It had previously worked on Southwark Council’s own office building at 160 Tooley Street.
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