M&G puts £37m West End estate on the market
1st November 2024 M&G has placed a mixed-use estate in Fitzrovia, London on the market with an asking price of £37m. The Portland & Riding Estate consists of three properties on Great Portland Street and Riding House Street, comprising 36,410 sq ft of retail, office, and residential accommodation originally developed by Great Portland Estates. The estate’s retail provision comprises seven units totalling 11,404 sq ft sq ft at a topped-up rent of £465,000 per annum. Tenants include The Whiskey Exchange, Townhouse, Clutch Europe, Aperture London, and Body20. The total topped-up passing rent of the estate is £2,072,505 per annum, representing an average rent of £56.92 per sq ft. The site benefits from excellent transport links, with Oxford Circus station within a 5-minute walk. A number of asset management opportunities are available at the estate, including occupational lease extensions, a breakup of the various components, and driving the retail income. A purchase at the minimum asking price of £37m would reflect a net initial yield of 5.24% and a capital value of £1,016 per sq ft. Knight Frank has been appointed to find a suitable purchaser for the properties. M&G acquired the estate from Great Portland Estates in 2018 for £48.3m.
