REG - Great Portland Ests. - GPE acquires The Courtyard, WC1

Great Portland EstatesAnnouncement

23/05/2024 07:15

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RNS Number : 5203P  Great Portland Estates PLC  23 May 2024

23 May 2024

 

GPE acquires West End Flex conversion opportunity at The Courtyard, WC1

 

Great Portland Estates plc (GPE) is delighted to announce a property swap with
the City of London Corporation (CLC). GPE has exchanged contracts to acquire
the long leasehold interest at The Courtyard, 1/3 Alfred Place, WC1 for £28.6
million, or £462 per sq ft and the simultaneous sale of its short leasehold
interest in 95/96 New Bond Street, W1 to CLC for £18.23 million, or £2,039
per sq ft and in-line with the March '24 valuation. GPE will make a net cash
payment to CLC of £10.4 million on completion in January 2025.

 

The Courtyard comprises 62,000 sq ft of vacant office and partially let retail
space, which GPE will substantially refurbish to deliver its Fully Managed
offer, providing best-in-class workspaces with high quality customer
amenities, a large roof terrace and re-configured modern retail space. GPE's
refurbishment of The Courtyard is planned to start in Q4 2025 with c.£62
million of investment. The building is expected to deliver £8.0 million of
Fully Managed rent roll annually (and £4.9 million NOI, after opex) with a
further £1.0 million from the retail space, generating a running yield in
excess of 6% and an ungeared IRR of 11%+.

 

The Courtyard is in a prime West End location, within walking distance of the
Elizabeth line station at Tottenham Court Road and is opposite to GPE's 31/34
Alfred Place, which is currently under refurbishment to create 41,700 sq ft of
Grade A Fully Managed space for delivery in Q4 2024. Together they will form a
cluster of Fully Managed buildings (totalling 103,700 sq ft) in this vibrant
location, providing greater choice for customers and operational efficiencies
for GPE.

 

James Harrop-Griffiths, Investment Manager, commented: "This transaction
represents a unique opportunity to recycle capital from a low-yielding retail
asset into a fantastic office development opportunity for our Fully Managed
business plan. The Courtyard is a well-located building, that's full of
character, and is perfectly suited to our Fully Managed offer. We are creating
a 'Flex cluster' within an already popular area of the West End as we advance
towards our ambition to grow our Flex portfolio to more than 1 million sq ft."

 

 Great Portland Estates plc                                                      +44  (0)  20  7647  3000
 Toby Courtauld, Chief Executive
 Nick Sanderson, Chief Financial & Operating Officer
 James Harrop-Griffiths, Investment Manager

 Yasemin Kiani, Communications Lead

 FGS Global
 James Murgatroyd & Gordon                                                       +44  (0)  20  7251  3801
 Simpson

For further information see www.gpe.co.uk or follow us on X at @GPE_london

LEI Number: 213800JMEDD2Q4N1MC42

 

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