Great Portland Estates has made a £57.6m swoop on Hammerson’s 18 & 19 Hanover Square
Great Portland Estates has made a £57.6m swoop on Hammerson’s 18 & 19 Hanover Square, it was revealed this morning.
The price tag is £5.3m in excess of book value at 31 December 2005. The purchase price reflects a net yield of 5.2%.
18 & 19 Hanover Square comprise two self-contained buildings totalling 70,000sq ft (6,505 sq m) of retail and office space. The properties are fully let to Lend Lease Europe, Avanta Management Services and Dolce & Gabbana UK at average rents of £45/sq ft (£484/sq m). Virtually all of the £3m annual rent roll is from the office tenants
and average unexpired lease term is 7.3 years.
Toby Courtauld, chief executive of Great Portland Estates, said: ‘We have acquired half of the western side of Hanover Square let at low average rents and giving us an attractive yield profile. The properties could well provide a substantial redevelopment opportunity whether or not the Crossrail project proceeds. In the meantime they are well set to benefit from the West End’s strong rental growth prospects.’
John Richards, chief executive of Hammerson, said: ‘This is in line with Hammerson’s policy of recycling capital. Proceeds will be reinvested in Hammerson’s existing operations.’