Great Portland joint venture offloads 240 Blackfriars
Great Portland Estates announced on Monday that the Great Ropemaker Partnership - the 50/50 joint venture between itself and Ropemaker Properties - has exchanged contracts to sell 240 Blackfriars Road to clients of Wolfe Asset Management.
The FTSE 250 firm explained that Wolfe Asset Management is a wholly owned subsidiary of the Al Gurg Family, which owns the multifaceted business conglomerate Easa Saleh Al Gurg Group in Dubai.
It said the headline price of £266.5m, marginally ahead of the September book value, reflected a net initial yield of 3.94% and a capital value of £1,176 per square foot.
Completion was scheduled for January.
“The sale of 240 Blackfriars Road is the culmination of an exceptional development project for the Great Ropemaker Partnership,” said Great Portland Estates chief executive Toby Courtauld.
“Having secured an attractive planning permission in March 2011, GRP commenced development in January 2012 following the pre-letting of 105,825 square feet to UBM.
“The sale continues our strategy of recycling capital out of assets where we have created value.”
Great Portland said 240 Blackfriars Road is a 20-storey landmark building constructed in 2014, providing a total of 226,271 square feet of grade A offices and retail accommodation.
The offices were fully let to seven office tenants including UBM, Boodle Hatfield, Ramboll UK and Lonely Planet Publications on rents ranging from £47.00 to £65.00 per square foot.
Retail tenants included Pret a Manger and Elvetham, trading as Abokado.
The sale incorporated Cubitt House, the 10,690 square foot adjoining retail and residential building, where all 10 apartments had been sold off on long leases with the retail unit let to The Coffeeworks Project.
Great Portland said the total contracted rental income was £11.2m per annum, with a current weighted unexpired lease term of approximately 8.4 years to the earlier of expiries or breaks.
“The 240 Blackfriars Road building is iconic in its design and an instantly recognisable feature of the London skyline,” said Wolfe Asset Management group general manager Abdulla Al Gurg.
“It perfectly fits within our strategy of owning best in class commercial buildings in prominent London locations.
“Southbank is regarded as one of London's most vibrant districts and thriving sub-markets, with a unique combination of world renowned arts and theatre institutions, hotels, luxury residential developments, excellent connectivity and prime real estate.”