The property is 34,800 sf, including 12,700 sf let to LVMH Fashion Group UK Limited and multi-let offices of 22,100 sf above. Roughly 50% of the ground rent is payable to freeholder, the Pollen Estate. Once that is deducted the property produces an income of euro 3.4 million ($4.4 million) a year and the deal reflects a 4.5% yield.
The Clarendon House deal means GPE disposals over the past couple of years now total euro 472 million ($608 million).
At the same time as announcing the sale, GPE also announced work has started on the remodelling of the entrance and office space at Bond Street House. Following the negotiated surrender of three principal leases, the 12,000-sf refurbishment is expected to be completed by the end of 2005, two years earlier than originally planned.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to asset-and-logo-licensing@alm.com. For more inforrmation visit Asset & Logo Licensing.