Great Portland Estates (GPE) has exchanged contracts on the freehold of 50 Finsbury Square, EC2, to a wholly-owned subsidiary of Wirtgen Invest Holding for £190m.
The headline price, which is subject to adjustment for final building area and retail leasing, reflects a topped up net initial yield of 3.85% and capital value of £1,471/sq ft and is broadly in line with GPE’s March 2022 book value after adjusting for estimated capex to complete.
GPE will retain responsibility for delivering the building, which was originally designed by Fosters & Partners and is currently undergoing an extensive refurbishment, with completion of the sale expected in Q1 2023.
The entirety of 50 Finsbury Square’s circa 121,000 sq ft office space has been pre-let to Inmarsat Global, with two of building’s four retail units already pre-let and the other two under offer. When fully let the building will generate rent of £9m per annum.
Toby Courtauld, chief executive of GPE, said: “In 50 Finsbury Square, we have created an exceptional home for Inmarsat, not least given the sustainability credentials our refurbishment will deliver. The sale is consistent with our strategy of recycling capital out of mature assets to be utilised in our many other development opportunities.”
