Great Portland Estates has acquired a 1.1 acre site between the Aldgate and the new Whitechapel Crossrail Station from Hermes Investment Management for £49.6m.
GPE said the site comprised:
- Cityside House -The freehold interest in a five-storey, 54,300 sq ft office building.
GPE said the property was currently unoccupied but had planning consent for an additional three floors, taking the total net internal area to 76,500 sq ft, reflecting a capital value of £250 per sq ft.
GPE said it expected to complete major refurbishment works during the second half of 2019, targeting average rents across the building of £47 per sq ft.
- Challenger House - The freehold interest in a five-storey hotel, leased to Qbic Hotels for a further 21 years at a rent of £1,400,000 p.a., with CPI linked five yearly reviews, capped and collared at 2% - 4% p.a. The hotel trades from 171 bedrooms with a public restaurant.
- Development sites - Freehold land to the rear of Cityside House, part of which has a planning consent for 19,000 sq ft of development, comprising hotel and residential uses.
GPE said it would seek to improve the existing consent to deliver more beneficial and value creating uses for the land including amenity space for the occupiers of Cityside House.
GPE investment director Robin Matthews said: "This acquisition represents an exciting opportunity for us to develop a well-designed, cost effective and prominent office building in the heart of Whitechapel, supported by a long-term income stream from Qbic Hotels, and further development sites.
"In addition, Whitechapel is set to benefit from significant further regeneration, including its new Crossrail station opening in late 2018."
At 9:54am: (LON:GPOR) Great Portland Estates PLC share price was +2.75p at 627.25p