Great Portland Estates has completed one of London's largest individual office sales of the year.
The London investor has sold One Newman Street, or Oxford House, in Fitzrovia to Royal London Asset Management for around £250 million or a 4.48% net initial yield.
The multi-let asset comprises 121,300 square feet of office and retail space arranged over nine floors and sits directly opposite the Dean Street entrance of the Tottenham Court Road Elizabeth Line. It is fully let with tenants including Scape UK Management and Bell Rock Capital Management alongside retailers such as Pandora. Royal London said the building is aligned with Royal London Asset Management Property’s investment strategy which focuses on best-in-class opportunities with strong potential for rental growth in central London.
In May, GPE said it aimed to sell £350 million of prime office sales over the next 12 months, with One Newman Street flagged as one of the potential sales as the London investment market picks up.
The sale is one of the largest in London this year and further evidence of the market improving. The largest single sale is State Street's acquisition of 100 New Bridge Street for £333 million from Helical, as revealed by CoStar News, and the partial interest transfer to Modon of a stake in 2 Finsbury Avenue for £501 million in January.
CBRE and Newmark advised GPE. RX London advised Royal London.
Will Edwards, Portfolio Fund Manager at Royal London Asset Management Property, said in a statement: “The acquisition of 1 Newman Street reflects our continued conviction in the strength of Central London’s prime office and retail market. This asset perfectly complements our strategy of investing at scale in highly accessible, high amenity, best-in-class buildings with exceptional sustainability credentials, that offer long-term growth potential and enduring value for our clients.”
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.”
Royal London Asset Management Property’s 2.4 million square feet office portfolio includes central London assets such as the upcoming Hogan Lovells headquarters at Holborn Viaduct, the law firm’s former headquarters, Atlantic House, and a landmark renovation project of the 55,000 square feet 151 Shaftesbury Avenue.
Royal London Asset Management Property was advised by RX London, and GPE was advised by CBRE and Newmark.
Royal London Asset Management Property was represented by Gowling WLG.