Hermes Real Estate Investment Management has exchanged contracts to buy 100 Regent Street, W1, for £64.6m from the Capital & Counties Properties and Great Portland Estates joint venture.
The price paid to the Great Capital Partnership for the 52,198 sq ft Grade II listed building, reflects a 3.66% net initial yield.
The property, which was famously occupied by Austin Reed, is held on a long lease from the Crown Estate expiring in December 2132 and geared to 10% of retail rents received.
It is now fully let to three tenants on five leases and produces a net income of £2.5m pa. GCP has agreed an overage provision with the purchaser should the property be sold in the first two years.
Last month, fund manager Stenham Property bought Regent Arcade House, W1, from GCP for £48m – a 5.5% yield.
The two deals mean the jv has sold £112.6m of property on Regent Street at a combined surplus of 8.3% to the March 2012 valuation.
Tudor Toone, CBRE and JLL advised the vendor on Regent Arcade House. Tudor Toone advised Hermes.
joanna.bourke@estatesgazette.com
