GPE sells its first net-zero carbon development: 50 Finsbury Square, EC2
Great Portland Estates plc (GPE) has announced the completion of the sale of 50 Finsbury Square, EC2 which, following verification, will be its first net zero carbon development.
Construction of the 129,200 sq ft building was completed in January, with the leases to Inmarsat Global Limited, and various smaller retailers, commencing shortly thereafter.
With the lettings concluded, the sale to a wholly owned subsidiary of Wirtgen Invest Holding GmbH, a private German family office has also now been completed.
The headline price of £190.0 million reflects a topped-up net initial yield of 3.85% and capital value of £1,471 per sq ft (or £1,690 per sq ft on expiry of rent frees).
The proceeds will be initially used to pay down the Group’s revolving credit facility and will reduce the company’s loan to value from 23.6% to a low 19.4% based on a pro-forma September 2022 balance sheet.
GPE CEO, Toby Courtauld, says: “The sale of 50 Finsbury Square concludes an exceptional development project for GPE. The completion of the sale enables us to recycle capital out of a mature asset where we have created value into our substantial development pipeline which is stacked full of future opportunities”