Great Portland Estates plc ("GPE") announces that The Great Victoria Partnership (No 2) ("GVP2"), its joint venture with Liverpool Victoria Friendly Society, has agreed, subject to Crown consent, to sell 208-222 Regent Street, W1 to a private purchaser for £96.6 million, broadly in line with the March 2008 book value.
The proceeds will be used to repay GVP2's non recourse loan of £35.4 million before distributing the balance to the joint venture's partners.
The building was purchased in April 2005 for £53.7 million and the headlease was regeared with the Crown Estate at a cost of £6.0 million. In 2007 GVP2 completed a phased reconfiguration of the retail space, much of which had previously been occupied by Liberty, at a cost of £6.6 million. Three new flagship stores were created and subsequently let to COS, the new concept brand of H&M; Desigual, the Spanish retailer; and GAP. The office element is let, primarily, to MWB, the serviced office provider. The building produces a net rent of £4.35 million per annum having deducted ground rent payable to the Crown Estate until March 2009.
