GPE offloads £250m Oxford Street mixed-use block
Great Portland Estates (GPE) has completed the sale of a mixed-use building on London’s Oxford Street to Royal London Asset Management for £250m, reflecting a net initial yield of 4.48%.
Located on the northern side of Oxford Street and immediately opposite the Elizabeth line entrance on Dean Street, 1 Newman Street comprises 121,300 sq ft of office and retail space across basement, lower ground, ground, and seven upper floors.
The building also features private roof terraces on floors two and seven, along with a 3,100 sq ft communal terrace on level eight.
The property is multi-let to nine customers and generates an annual rent of around £11.9m, with a weighted average unexpired lease term of 6.4 years to the earlier of break or expiry.
Hugh Morgan, director of portfolio management at GPE, said: “The sale of 1 Newman Street marks the culmination of an exceptional journey for this redevelopment project. We’ve delivered a best-in-class office and retail building in the heart of the West End, and this transaction crystallises our returns while enabling us to reinvest the proceeds, including into the next phase of our exciting development pipeline.”