LONDON: London office developer Great Portland Estates bought two sites for more than 250 million pounds ($397 million), betting on a boost from the arrival of the Crossrail rail link in the English capital.
It paid 132.75 million pounds for a 246,500 square feet block on Grays Inn Road that is occupied by British broadcaster ITN News in a 50:50 joint venture with the BP pension fund, it said today. The price reflects an initial yield of 6.4 percent.
The second is a 2.3 acre site owned by Royal Mail Group in the West End district of the city, which it bought for 120 million pounds.
Both sites will benefit from an uplift in property values that will follow the arrival of the Crossrail high speed east-west train link in 2018, the company said.
"Its redevelopment will accelerate the regeneration of the east end of Oxford Street, one of London's most exciting submarkets, which is set to benefit significantly from the opening of Crossrail," Chief Executive Toby Courtauld said of the Royal Mail deal.
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