Property company Great Portland Estates has bought 90 Queen Street, London, from international financial services company Prudential for almost £46 million.
The building, which was completed in 1996, comprises nearly 70,000 square feet of prime retail and office space. The office space is currently rented by Intesa Sanpaolo, a leading Italian banking group, which will occupy it until 2017 on its present lease, with a tenant option to break in 2013.
GPE investment director Ben Chambers commented: “The break will come at a time when we forecast limited supply in the City market and, at a capital value per sq. ft. for the office component of £565, we are buying land and a building at beneath replacement cost.”
The ground floor retail space is currently occupied by Lloyds Banking Group plc, Pret a Manger and Hugo Boss. In total, rental income for the property is almost £4 million per year.