GPE tees up sale of Facebook HQ

Great Portland Estates is in early-stage talks to sell the new headquarters of Facebook for around £450m. German open-ended fund Deka has been in discussions to buy the building at One Rathbone Square, W1, at a price reflecting a yield of close to 4.25%. However, other parties are also circling the asset and no deal with Deka is certain. If completed, the deal would be the largest investment transaction in the West End this year. Facebook agreed to take all of the 227,324 sq ft of office space in the building on a 15-year lease last September, agreeing a rent of £16.9m, or £74 per sq ft. The building, which is due to complete in February next year, is located near to Tottenham Court Road station, which will be a hub for Crossrail from 2018. One Rathbone Square also includes 24,222 sq ft of shops. The 142 flats in the development have gone for private sale. The disposal would be the second major sale by GPE in quick succession. Last week it agreed to sell 73/89 Oxford Street and 1 Dean Street, W1, to Norges Bank Real Estate Management for £205.2m – a 3.2% yield. In an interview with Estates Gazette on the day of the company’s half-year results and the day after the sale to Norges, chief executive Toby Courtauld said GPE was looking to recycle capital form sales to invest into development. “We are working on opportunities for the next cycle and the development team has never been busier. We are getting these ready for a start when we think conditions are most suited, and that isn’t too far away,” he said. GM Real Estate is acting for GPE; CBRE and Savills are Deka’s retained UK advisers. • To send feedback, e-mail david.hatcher@estatesgazette.com or tweet @hatcherdavid or @estatesgazette