Great Portland Estates sells West London asset for £250m

(Sharecast News) - Property developer Great Portland Estates has sold 1 Newman Street, West London to Royal London Asset Management Property for £250m, reflecting a net initial yield of 4.48%, marginally ahead of the March 2025 book value. Great Portland Estates said the freehold property, which was redeveloped in 2021, generated annual rent of around £11.9m, with a weighted average unexpired lease term of 6.4 years to the earlier of break or expiry.

The FTSE 250-listed firm stated that 1 Newman Street was made up of 121,300 square feet of Grade A office and flagship retail space across basement, lower ground, ground, and seven upper floors. The building features private roof terraces on floors two and seven, along with a 3,100 square foot communal terrace on level eight, and sits on the northern side of Oxford Street, immediately opposite the Elizabeth line entrance on Dean Street.

GPE's director of portfolio management, Hugh Morgan, 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."

Reporting by Iain Gilbert at Sharecast.com