TIDMGPOR
RNS Number : 5179I
Great Portland Estates PLC
20 June 2017
20 June 2017
GPE Acquires Cityside and Challenger House, Whitechapel E1
Great Portland Estates plc ("GPE") has acquired the freehold of
land and buildings including Cityside and Challenger House, 40/42
Adler Street and 2/8 Whitechapel Road, London E1 from Hermes
Investment Management, for GBP49.6 million (GBP320 per sq ft*).
The 1.1 acre site sits between Aldgate to the west and the new
Whitechapel Crossrail Station to the east and is made up of;
-- Cityside House -The freehold interest in a five-storey,
54,300 sq ft office building. The property is currently unoccupied
and has planning consent for an additional three floors, taking the
total net internal area to 76,500 sq ft, reflecting a capital value
of GBP250 per sq ft*. GPE expects to complete major refurbishment
works during the second half of 2019, targeting average rents
across the building of GBP47 per sq ft.
-- Challenger House -The freehold interest in a five-storey
hotel, leased to Qbic Hotels for a further 21 years at a rent of
GBP1,400,000 p.a., with CPI linked five yearly reviews, capped and
collared at 2% - 4% p.a.. The hotel trades from 171 bedrooms with a
public restaurant.
-- Development sites - Freehold land to the rear of Cityside
House, part of which has a planning consent for 19,000 sq ft of
development, comprising hotel and residential uses. GPE will seek
to improve the existing consent to deliver more beneficial and
value creating uses for the land including amenity space for the
occupiers of Cityside House.
Robin Matthews, Investment Director at GPE, said: "This
acquisition represents an exciting opportunity for us to develop a
well-designed, cost effective and prominent office building in the
heart of Whitechapel, supported by a long-term income stream from
Qbic Hotels, and further development sites. In addition,
Whitechapel is set to benefit from significant further
regeneration, including its new Crossrail station opening in late
2018.
Chris Taylor, Head of Private Markets at Hermes Investment
Management, said: "The sale of 40/42 Adler Street and 2/8
Whitechapel Road is an excellent result for the Fund. We are now
able to redeploy capital into new acquisitions where we believe
additional value can be added."
*based off net internal area of the existing and consented
property
Contacts:
Great Portland Estates plc
Toby Courtauld - Chief Executive 44 (0) 20 7647 3042
Robin Matthews - Investment Director 44 (0) 20 7647 3010
Finsbury Group
James Murgatroyd 44 (0) 20 7251 3801
Gordon Simpson
Notes to Editors:
Hermes Investment Management
We are an asset manager with a difference. We believe that,
while our primary purpose is helping beneficiaries retire better by
providing world class active investment management and stewardship
services, our role goes further. We believe we have a duty to
deliver holistic returns - outcomes for our clients that go far
beyond the financial and consider the impact our decisions have on
society, the environment and the wider world.
Our goal is to help people invest better, retire better and
create a better society for all.
We offer clients access to a broad range of specialist, high
conviction investment teams with GBP30.8 billion* assets under
management. In Hermes EOS, we have the industry's leading
engagement resource, advising on GBP264.2 billion* of assets.
Hermes' investment solutions include:
-- Private markets - Infrastructure, private debt, private equity and real estate
-- High active share equities - Asia, global emerging markets,
Europe, US, global, and small and mid cap
-- Credit - Absolute return, global high yield, multi strategy and global investment grade
-- Multi asset - Multi asset inflation
-- Stewardship - Active engagement, intelligent voting, sustainable development and advocacy
*Please note the total AUM figure includes GBP6.0bn of assets
managed or under an advisory agreement by Hermes GPE LLP ("HGPE"),
a joint venture between Hermes Fund Managers Limited ("HFM") and
GPE Partner Limited. HGPE is an independent entity and not part of
the Hermes group. GBP0.1bn of total group AUM figure represents HFM
mandates under advice. Source: Hermes as at 31 March 2017 with the
exception of one portfolio totalling GBP10.6m valued as at 28
February 2017.
Great Portland Estates plc
We are a FTSE 250 property investment and development company
owning GBP3.1 billion of office, retail and residential space in
central London.
Our portfolio consists of 57 properties totalling 3.0 million
sq. ft., with a development pipeline totalling c2.0 million sq. ft.
of potential new space.
We aim to deliver superior returns to our shareholders by
unlocking the often hidden potential in retail and office property
in central London.
*The entity HGPE mentioned above has no corporate relationship
with any entity within the wider Great Portland Estates plc
group.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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