Quintain pockets £36m from property
QUINTAIN Estates and Development has nearly doubled its money from the £80m sale of the Mount Royal block of retail leases at the western end of Oxford Street to Great Portland Estates.
The deal nets Quintain £36m profit over costs since buying into one of the most rundown blocks on Oxford Street seven years ago and reducing a complicated set of around 100 leases to eight.
The 88,500 square feet of retail space, including Next and Etam, give an annual rental income of £3.7m.
Great Portland expects today's yield of around 5% to more than double when part of the head lease reverts to it in 2012.
The block will go into a new joint venture with Liverpool Victoria Friendly Society with £122.7m of assets.
Each partner will contribute £33.5m equity financed through cash and property contributions.
Other properties joining the Great Victoria Limited Partnership include GPE's offices at 81 and 82 Dean Street, let to a unit of media firm Omnicom.
Liverpool Victoria's contributions include the London HQ of shopping mall operator Liberty International.
