GPE exchanges contracts on two central London deals with Deka Immobilien Investment worth £335.35m

This article was produced by Nabarro LLP, which joined CMS on 1 May 2017.

Nabarro has advised Great Portland Estates (GPE) on the simultaneous exchange of contracts on two separate central London deals with Deka Immobilien Investment worth a combined £335.35m. In the first transaction, GPE sold 33 Margaret Street, W1 to Deka-ImmobilienEuropa fund for £216.25m.

33 Margaret Street is part freehold/part leasehold and comprises 103,700 sq ft of predominately offices, developed by GPE in December 2012. The offices were fully let to Savills at practical completion for a term of 20 years.

In the second transaction, GPE has acquired 50 Finsbury Square, EC2, from Deka-ImmobilienGlobal fund for £119m. 50 Finsbury Square is freehold and comprises 126,500 sq ft of predominately offices, developed in 2000. The offices are fully let to Bloomberg until June 2020.

Leading the Nabarro team in both transactions was Real Estate partner Caroline Maude. In the sale of 33 Margaret Street, Caroline was assisted by senior associate Sarah Cooke and associate Chris Mullings (Real Estate), senior associate Julia Cockroft (Tax) and senior associate Rebecca Prigg (Construction). In the acquisition of 50 Finsbury Square, Caroline was assisted by senior associate Lindsey Barrett and associate Matt Flanagan (Real Estate), associate Julia Cockroft (Tax) and associate Ruby Jhita (Construction).

Toby Courtauld, GPE Chief Executive said:
“We have a good working relationship with Deka and are delighted to have exchanged these two transactions with them. The sale of 33 Margaret Street is the culmination of six years of work by the team at GPE, which has seen the property acquired, consented, built, leased and now sold crystallising a healthy IRR.

“50 Finsbury Square is, by contrast, an asset that will benefit significantly from GPE’s repositioning once Bloomberg vacate, as expected. In addition, the exciting transformation of this area resulting from Crossrail, and the continued growth in the Creative/TMT sector, will provide a further catalyst for growth.”

Commenting on both transactions, Real Estate partner Caroline Maude said:
“We were delighted to work on such significant real estate transactions for GPE that demonstrate the company’s drive and ambition. Nabarro and GPE have a longstanding relationship which is testament to the expertise of our award-winning real estate team. We look forward to working on future projects with GPE.”

CBRE and Savills advised Deka.