Great Portland Estates has sold its Met Building at 39-45 Tottenham Court Road in London’s West End to Lazari Investment for £107m at a net initial yield after costs of 4.22%
GPE bought the111,500sq ft building in 2003 for £16m and undertook a £23.8m refurbishment of the building.
The Met Building is mostly let to a range of tenants including Publicis subsidiary Zenith Optimedia, construction consultant Gardiner & Theobald, BA Pension Trustees, HSBC and Natwest. The building generates rental income of £4.7m a year with office rents between £41.50 and £55.00 per sq ft. GPE said the sale price was broadly in line with the March 2007 book value.
Toby Courtauld, GPE’s chief cxecutive, said: ‘Met Building was the first major project completed in our near term development programme and, in the four years and three months since purchase, has provided the Group with a post tax return on capital employed of 156%. The successful sale provides compelling evidence of the building’s quality and is in line with our strategy of recycling capital into higher growth segments within our portfolio.’