INDUSTRY NEWS

ITN offices sold for £133 million

The London offices of Independent Television News have been sold for £133 million.

Great Portland Estates Plc and BP Pension Fund struck a deal to buy the offices from the owners, an investment firm in Boston.

The deal underlines the rising cost of London office space as demand continues to soar, whilst available properties are becoming scarce.

The purchase was confirmed in a statement on September 12, according to Bloomberg news.

The Great Ropemaker Partnership – the joint venture between Great Portland and BP Pension Fund – acquired 200 and 214 Gray’s Inn Road from Beacon Capital Partners LLC. The two properties should bring in rent of around £8.9 million per year.

The Partnership is confident that rents will rise as office space in the capital remains at a premium.

Ben Chambers, Great Portland’s investment director, told Bloomberg that improvements to rail infrastructure between the capital’s West End and the City financial district, such as the Thameslink upgrades and Crossrail project, will help lift both rents and property values in the coming years.

The announcement comes shortly after Great Portland paid the Royal Mail Group £120 million for a 2.3 hectare site in Oxford Street.

Royal Mail will re-lease the property from Great Portland until 2013, at which point the building will be redeveloped to host offices, shops and residential properties. Royal Mail will receive a slice of the future profits from the site as part of the agreement.

In July, Great Portland announced that its real estate portfolio in London had appreciated 3.8 per cent because of demand from international investors.

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