GPE swaps in Oxford St

Great Portland Estates (GPE) has swapped its freehold interest in 79/89 Oxford Street, in the West End of London with a private investor in return for a new 250-year leasehold interest at both 79/89 Oxford Street and the adjoining property, 73/77 Oxford Street. The properties, prominently located at the corner of Oxford Street and Dean Street, next to the Dean Street Crossrail station currently under development, formed what GPE said was an exciting potential redevelopment site of 0.43 acres.

The properties total 82,190 sq ft of office and retail accommodation and produce an annual income of around £2.6m from 12 tenants with the majority of leases running to the end of 2014.

The new lease will initially pay a fixed head rent of £620,000 a year until the first redevelopment. The ground rent will then change to a base rent of £310,000 a year plus five percent of net rents received.

Toby Courtauld, GPE, chief executive, said: “The properties are located in an exciting area of central London will offer a first class retail and office development.”