GPE and M&G in £49.6m West End deal

Great Portland Estates has disposed of the freehold to one of its West End mixed-use developments to M&G Real Estate for £49.6m reflecting a 3.9% yield. The property at 78-92 Great Portland Street and 15-19 Riding House Street, both W1, comprises 18,000 sq ft of offices, seven shops and six vacant flats plus two flats let on assured shorthold tenancies. The properties bring in a combined rent of £1.7m per year from the office and retail element.  GPE is to retain a 999-year interest in nine new apartments at 80 Great Portland Street and 15-19 Riding House Street which are currently being marketed for sale. Hugh Morgan, director of investment management at GPE, said: “With the commercial buildings now fully let and our business plans complete, the sale continues our strategy of recycling capital out of mature assets.”