Great Portland Estates Plc's 50/50 joint venture with Ropemaker Properties Ltd. agreed to sell the mixed-use 240 Blackfriars Road in London for £266.5 million, reflecting a 3.94% net initial yield.
The property is being divested above its September book value and reflects a capital value of £1,176 per square foot. It is scheduled to be acquired by clients of Easa Saleh Al Gurg Group LLC unit Wolfe Asset Management Ltd. in January 2018.
Great Ropemaker Partnership built the 20-story building offering 226,271 square feet of grade A office and retail space in 2014. The office component of the building is fully leased to seven tenants including UBM Plc, Boodle Hatfield LLP and Ramboll UK Ltd.
Included in the deal is a 10,690-square-foot retail and residential building, Cubitt House, where all 10 apartments have been sold off on long leases and a retail unit is leased to The Coffeworks Project Ltd.
The properties have a weighted unexpired lease term of approximately 8.4 years and reflect £11.2 million in total contracted annual rental income.
