GPE (Great Portland Estates) is a large British property development and investment company. The majority of their sizable assets – which totaled £2.3 billion last year – are office and retail buildings based in London. GPE have been constructing a mixed office and retail use development at 73-89 Oxford Street and 1 Dean Street, which has just been sold to Norges Bank Real Estate Management for a huge £276.5 million, reflecting a yield of 3.2%.
The development is expected to complete by the end of Q2 2017 and is pre-let to New Look, Benetton and the Money Supermarket Group for an average lease length of 17 years, which will produce a collective rent roll of £9.74 million. Norges will pay GPE in stages until completion, taking into account a deduction due to interest on their £205.2 million initial payment at a rate of 3.2% a year, also allowing rent-free periods for tenants.
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