http://www.propertyweek.com/finance/gpe-sells-oxford-street-development-for-%C2%A32765m/5086257.article16/11/2016
GPE sells Oxford Street development for £276.5m
16 November 2016 | By David Parsley
Great Portland Estates (GPE) has sold its retail and office development at 73/89 Oxford Street and 1 Dean Street, London to Norges Bank Real Estate Management (NBREM) for £276.5m.

Great Portland Estate’s 73-89 Oxford Street
The deal reflects a net initial yield of 3.2%.
The office and retail development is under construction with practical completion expected in the second quarter of next year. The scheme is pre-let to New Look Retailers, Benetton and Moneysupermarket.com Group with a weighted unexpired lease term of 17 years. The rent on completion will be £9.74m a year.
NBREM has paid £205.2n, with the balance of the purchase price payable on completion of the leases following completion of the development.
The price NBREM will pay allows for a deduction in lieu of interest on their initial capital outlay until completion at a rate of 3.2% a year and an allowance for tenant rent free periods.
Based on the current cost and programme, GPE will receive two further payments on completion of the leases in July 2017 of £46.2m in deferred consideration and £25.1m for reimbursement of the development costs to complete the scheme.
Toby Courtauld, chief executive of GPE, said: “Oxford Street has been an exceptional project for us and this sale continues our strategy of recycling capital out of assets where we have created significant value. Having secured an attractive planning permission, pre-let the building and enhanced our interest through the purchase of the freehold earlier this year, this sale crystallises a whole life capital return of 75% and an annualised unlevered IRR of 28.4%.”
CBRE advised Great Portland Estates on the deal.
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