Leading global private investment firm, Starwood Capital Group, have sold their stake of the joint London office venture with Great Portland Estates PLC. The Great Star Partnership joint venture is now in full ownership of Great Portland, being purchased for £61.4m.
Great Portland are set to redeem £73.1m in outstanding debts against properties owned by the joint venture, as the deal will see them take full ownership of the leases of City Tower and City Place House properties.
Comprised of 313,000 sq. ft of office space, the development is currently rented at £10.2m per annum, equating to £608 per sq. ft. 55,000 sq ft. of space is currently vacant, with 33,000 sq. ft expected to become vacant in the near future, presenting opportunities for future growth and refurbishment for GPE.
Great Portland, chief executive, Toby Courtauld, said of the transaction, “We are delighted to have acquired Starwood Capital’s interest in the GSP, giving us full ownership of City Tower and City Place House, after a successful period of joint venture. We look forward to unlocking further value from both these core City assets, which continue to provide numerous opportunities for us to drive returns”
By: Kirsty MacGregor
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