Great Portland Estates and Prudential have completed a property swap of four prime West End assets for a total £86.9m
In the first half of the ‘swap’, Toby Courtauld’s acquisitive West End specialist has bought 65/71 New Bond Street and 192/194 Oxford Street from Prudential for £51.6m, while in the second half, GPE has sold 293/295 Oxford Street and 14 Hanover Square to Prudential for £35.3m. The £16.3m balance will be settled in cash by GPE.
192/194 Oxford Street and 65/71 Bond Street provide a total 57,400 sq ft (5,332 sq m) of office and retail space and produce a current rental income of £2.6m a year.
293/295 Oxford Street and 14 Hanover Square comprise 26,600 sq ft ( 2,471 sq m) of office and retail space and produce a rental income of £1.7m.
Together with 65/71 New Bond Street and the adjoining properties at 18/19
Hanover Square, which were purchased in August, GPE has now assembled an important 1.2 acre land holding bounded by Hanover Square, Tenterden Street and New Bond Street.
Toby Courtauld, chief executive of GPE, said: ‘Our swap transaction with The Prudential completes the assembly of two prime West End holdings. Both sites offer good scale, are located in rapidly improving micro-locations and have plenty of interesting opportunities to explore. The sale of 293/295 Oxford Street and 14 Hanover Square is in line with our strategy of recycling capital out of mature assets.’
John Wythe, head of life funds for PRUPIM, said: ‘This deal makes sense for all. In each case the two companies have had adjoining ownerships and see benefit in rationalizing and consolidating these.’