GPE to make £61m sale

Contracts have been exchanged between GPE and a vehicle owned and managed by Warburg-Henderson.

The deal to buy the 68,438 sq ft property reflects a yield of 5.39% and a capital value of £891/sq ft.

The sale price of £61.0m is 1.7% ahead of the June 2013 valuation.

Intesa Sanpaolo is the majority occupier of the property accounting for 85% of the rental income. Two further tenants, retail occupiers, produce £3.48m per annum. The property is held majority freehold.

A stock exchange announcement released today said that the deal is expected to complete in December.

Toby Courtauld, GPE chief executive said: “90 Queen Street was the first acquisition following our 2009 rights issue, timed to allow us to take advantage of the then severe property market distress.

“Having restructured the leases, this sale crystallises the strong performance we have enjoyed since acquisition and delivers an ungeared IRR of 13% per annum”.


Source: Sarah Stewart, Property Week