Global real estate investors M&G have negotiated a significant deal to acquire GPE’s mixed-use scheme at both 78-92 Great Portland Street and 15-19 Riding House Street for just shy of £50 million.
The deal reflects a capital value of £1,362 per sq ft, equal to net initial yield of 3.9% on a topped-up basis.
The recently developed space at 78-92 Great Portland Street is home to Tony Blair’s Institute for Global Change, which has a contract on 18,100 sq ft until May 2027. It also houses seven retail units across 11,400 sq ft currently let for a total of £500,000 a year, six vacant residential units and two flats let on assured shorthold tenancies.
Director of Investment Management at GPE Hugh Morgan has stated: “The redevelopment of 78-92 Great Portland Street and 15-23 Riding House Street has not only delivered new Grade A offices and retail units, but also satisfied the off-site residential planning requirements for other successful schemes including 30 Broadwick Street, 55 Wells Street, and Rathbone Square. With the commercial buildings now fully let and our business plans complete, the sale continues our strategy of recycling capital out of mature assets.”
This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.
