Henderson offloads French Railways House and Jermyn Street property in 拢39m deal

Great Portland Estates has paid Henderson Global Investors 拢39m for the head leasehold interest in two prime central London properties 鈥� French Railways House in Piccadilly and 50 Jermyn Street.

It said the two adjacent buildings 鈥� both built in the 1950s and owned by The Crown Estate  鈥� offered a 鈥渟uperb development opportunity鈥� over the longer term.

Chief executive Toby Courtauld said Great Portland Estates (GPE) expected to grow the properties鈥� yield from 5.1% to 7% over the next two years through 鈥渋mminent lease events鈥� and focused asset management.

GPE said the properties鈥� 49,879 ft2 of office and retail accommodation was 鈥渦nderdeveloped鈥�. The leases are due to expire in 2053 and 2057.

Nick Deacon, director of property at Henderson Global Investors said the sale of the properties formed part of a strategic repositioning of the fund. 

鈥淭he proceeds will be reinvested into CLOF 1鈥檚 development programme over the near term, including the fund鈥檚 joint venture with Istithmar P&O at Regent Quarter in King鈥檚 Cross, the proposed redevelopment of 54-57 Great Marlborough Street in Soho and Bishop鈥檚 Court in Spitalfields,鈥� he said.

Deacon said deploying capital into the development and refurbishment activities was a prudent and cost effective course of action at a time when the London office investment markets were 鈥渃hallenging鈥�.

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