The Great Ropemaker Partnership (“GRP”), a 50:50 Joint Venture between Great Portland Estates plc (“GPE”) and The BP Pension Fund has acquired 148 Old Street, EC1 from The BP Pension Fund for £30.0 million, reflecting a capital value of £307 per sq. ft. and an initial yield to GRP of 6.93%.
148 Old Street is a 97,807 sq. ft., office building arranged over lower ground, ground and six upper floors. It is held freehold and is let to Royal Mail Group Limited at a rent of £2.17 million per annum (£22.19 per sq. ft.) until 2020, with a rent review and occupier break option in May 2015. The property sits on a site of 0.83 acres and with a net to gross ratio of only 66%, provides an exciting opportunity for refurbishment or redevelopment from 2015.
"We are delighted to have acquired 148 Old Street at an attractive initial yield of almost 7% and off a low entry cost of £307 per sq. ft., or only £200 per sq. ft. based on the gross internal area. This is a well-located site providing opportunities to create significant value over the medium to longer term in this rapidly changing part of central London."
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We have now invested more than 80% of the equity capital raised from shareholders only four months ago. With a number of interesting opportunities under review, I remain confident that the balance will be invested well within our original timing guidance of 12 to 18 months."
