Highlights

  • GPE acquires 155-year leasehold at 10 South Crescent, WC1, for GBP 51m.
  • Planned repositioning to create decarbonised office and retail space with premium amenities.
  • Net yield at acquisition is 6.8%, with projected running yield of 7.1%.

Great Portland Estates plc (LSE:GPE) has completed the acquisition of a 155-year leasehold interest in 10 South Crescent, WC1, from the City of London Corporation for GBP 51m. The transaction reflects GBP 708 per sq ft based on current net internal area (NIA).

Yield and Leasing
The purchase price provides a net yield of 6.8% (net of top-up) and a projected running yield of 7.1% once the vacant retail unit is leased. The 72,605 sq ft building currently has offices single-let for the next four years at a reversionary rent of GBP 67 per sq ft. Recent lettings nearby have achieved rents exceeding GBP 125 per sq ft.

Building Repositioning
The building will be repositioned to deliver a decarbonised headquarters office and retail facility, including enlarged roof terraces and enhanced amenities. The project forms part of GPE’s portfolio of West End properties, providing a mix of Grade A HQ and fully managed office spaces in a location with transport access.

West End Location
10 South Crescent is located within minutes of Tottenham Court Road’s Elizabeth line station and joins an existing cluster of GPE properties around Alfred Place. This area is characterised by high-quality office and retail space in central London.

Portfolio Expansion
The acquisition follows GPE’s 2024 rights issue and is part of six West End repositioning opportunities with an estimated total capital commitment of circa GBP 440m. The portfolio additions are reported to be at a combined discount to replacement cost of approximately 60%.

Share Performance
GPE was trading at GBX 320.50, up by 1.42% on 7 Jan 2025.