Great Portland Estates (GPE) has acquired a new 155-year long leasehold interest in 10 South Crescent in London’s West End for £51m from the City of London Corporation.
The purchase price reflects a net yield of 6.8% and a projected running yield of 7.1% once the vacant retail unit at the building is let.
GPE will reposition the 72,605 sq ft building to create a best-in-class, decarbonised HQ office and retail scheme featuring premium amenities and enlarged roof terraces.
The office space is currently single-let for a further four years at a rent of £67/sq ft with recent lettings nearby achieving more than £125/sq ft.
Harry Buxton, investment manager at GPE, said: “10 South Crescent is a valuable addition to our central London portfolio and further demonstrates our ability to find value in our core West End markets. Since our 2024 rights issue, we have now acquired six West End repositioning opportunities with an estimated capital commitment of circa £440m and at a combined discount to replacement cost of some 60%.”
