Great Portland Estates (GPE) has opted to sell a major London office building for a reported £54.5m.
The central London based commercial property investment and development firm has agreed to sell 20 St James’s Street to a German Pension Fund managed by Pramerica Real Estate Investors.
The 55,490 sq ft property located in SW1 is currently let to seven office tenants as well as one retail tenant and produces a net rent of £1.2 million per annum. GPE originally purchased the building for £42.5m in 2010.
GPE chief executive, Toby Courtauld, said: “After purchasing 20 St James’s Street in 2010 we were planning to refurbish the building in 2015 when we expect there to be limited supply of space in the West End.
“However, as a consequence of a strong off-market approach, it made financial sense for us to sell the property now and invest the proceeds into other schemes in our exceptional development programme.”
As of September 30 2013, GPE, currently has a portfolio value of £2.5bn with a large portion of the portfolio located in the West End, Southwark and north of Oxford Street.
It currently has 24 projects in the pipeline which will lead to the development of more than 2.3 million square feet of offices and other buildings.
By: Kirsty MacGregor
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