Nabarro advises Great Portland Estates in £222.4m sale of 95 Wigmore Street to UBS Global Management

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

Nabarro has advised The Great Wigmore Partnership (GWP) in the sale of 95 Wigmore Street for £222.4 million to UBS Global Asset Management.

GWP is a joint venture between Great Portland Estates (GPE) and Aberdeen Asset Management and Nabarro has been acting for the joint venture since 2007, advising on structuring and construction & planning matters, leading up to the recent office and retail pre-lettings.

95 Wigmore Street is a 98,800 sq ft office and retail building which includes an additional building known as 35 James Street totalling 1,882 sq ft. The total contracted rental income is £8.1m a year.

Leading the Nabarro team was Real Estate partner Barry Morris assisted by senior associate Lindsey Barrett, associate Sanjeet Liddar as well as Construction partner Alistair McGrigor and Tax associate Lauren Lenz.

Commenting on the sale, Toby Courtauld, chief executive of GPE, said:

“The sale of 95 Wigmore Street is the culmination of an exceptional development project for GWP, with the office accommodation fully let only six weeks after practical completion. The sale continues our strategy of recycling capital out of assets where we have created significant value and back into our portfolio of central London development and refurbishment projects, timed to coincide with a shortage of new Grade A space to let”.

Commenting on the transaction, partner Barry Morris said:

“This transaction stands out for a number of reasons. Firstly, the deal reflects a remarkable net yield of 3.4%. Secondly, the sale of this significant property was turned around in just five days from agreement of the heads of terms to completion. And thirdly, it has enhanced our longstanding relationship with Great Portland Estates, having acted for them on the original acquisition back in 2007 as well as the recent office and retail development.”

Additionally, Nabarro advised GPE on their acquisition of Starwood Capital’s ownership in City Tower, 40 Basinghall Street, EC2 and the adjacent City Place House, 55 Basinghall Street, EC2 which together occupy a 1.3-acre, core City site. The buildings provide 313,000 sq ft of office space and provides a rent roll of £10.2m which reflects £44.00/ sq ft. This acquisition gives GPE full ownership of these assets.