St James commercial property acquired by Great Portland - Commercial Property News covering City of London Commercial Property News, Mayfair & St James Commercial Property News, Mid Town Commercial Property News, Outer London Commercial Property News, Victoria & Knightsbridge Commercial Property News

St James commercial property acquired by Great Portland - Commercial Property News covering City of London Commercial Property News, Mayfair & St James Commercial Property News, Mid Town Commercial Property News, Outer London Commercial Property News, Victoria & Knightsbridge Commercial Property News

Great Portland has made a central London commercial property investment with the acquisition of an eight-storey, 55,490 sq ft office building for £42.5 million from IVG UK Limited.

The company purchased 20 St James's Street, SW1, at a capital value of £765 per sq ft and the purchase price reflects a net initial yield on expiry of rent free periods of 4.5 per cent.

However, the yield would rise to 5.2 per cent if the 7,000 sq ft of space currently vacant was to be let in its existing condition at an average of £49 per sq ft, stated the company.

Currently occupied by nine tenants at an average rent of £55 per sq ft, the building generates a gross rent of £2.39 million per annum and the majority of leases expire in 2015, while some have breaks in 2012.

GPE chief executive Toby Courtauld, said: "It is in a prime St James's location, let off low average rents for the area and offers immediate asset management opportunities with a fuller refurbishment prospect in the medium term."

A central London property investment and development company, Great Portland owns over £1.5 billion of real estate.

Posted by Emma Davies

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