(Alliance News) - Great Portland Estates PLC on Friday said it has bought King Sloane Properties Ltd, which owns the freehold interests at the Soho Square estate in London, from Belgravia & Chelsea Property Services Ltd.

The freehold interests comprise 16/19 Soho Square, 29/43 Oxford Street and 7 Falconberg Mews in the West End of London.

The property developer said the cash price is based on a property value of GBP70 million or GBP772 per square foot of consented net internal area and is subject to further balance sheet adjustments. The was met from Great Portland Estates' existing undrawn facilities and cash.

Great Portland Estates said the 57,456 square foot mixed-use buildings are currently multi-let at around GBP1.5 million per year with vacant possession expected by March 2024.

The company said that the half-acre site benefits from planning consent to demolish the existing buildings and deliver around 90,000 square feet of new grade A office and 'prime' retail space.

Great Portland Estates said it intends to re-work the designs to improve the quality of office and retail space. It believes this will further increase "its attractiveness to prospective customers in a materially under-supplied market".

"This acquisition represents a fantastic opportunity for us to develop a strategic West End freehold site into a best-in-class headquarters building with excellent sustainability credentials," said Great Portland Estates Senior Investment Manager Alexa Baden-Powell.

The company added that the buildings are located "in the heart of the West End at the eastern end of Oxford Street and back onto Soho Square, just 100 metres from the new Tottenham Court Road Elizabeth Line station".

"The redevelopment will provide a best-in-class HQ office building on Soho Square with flagship retail fronting Oxford Street, arranged over basement, lower ground, ground and eight upper floors, with multiple private terraces and a communal roof terrace," said Great Portland Estates.

Its shares were up 0.3% at 401.20 pence early Friday in London.

By Greg Rosenvinge, Alliance News reporter

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