Great Portland Estates has exchanged contracts on the sale of the freehold of 50 Finsbury Square, EC2, to a wholly owned subsidiary of private German family office Wirtgen Invest Holding.
The sale price of £190m reflects a topped up net initial yield of 3.85% and capital value of £1,471 per sq ft.
GPE will retain responsibility for delivering the development, with the sale expected to complete early next year following practical completion of the building and commencement of the leases of the office and retail space.
Net proceeds from the sale will be initially used to pay down GPE’s revolving credit facility and will reduce its loan-to-value ratio from 22.2% to 16.8%.
Originally a Fosters & Partners-designed building, 50 Finsbury Square is undergoing a comprehensive refurbishment and will provide around 121,800 sq ft of offices.
The retail element of the property consists of 7,400 sq ft across four shops.
The entirety of the office space has been prelet to telecoms company Inmarsat Global. Two of the shops have been prelet and the remaining two are under offer.
Once fully let, the building will provide around £9m of rent a year.
GPE chief executive Toby Courtauld 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.”
Cushman & Wakefield advised Wirtgen on the deal.
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