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Great Portland sells off new Facebook HQ for £435m

Property investors Great Portland Estates has sold the freehold for its Rathbone Square development in west London to a German investment firm in a deal totalling £435m.

The agreement will see Rathbone Place Jersey Limited, an entity owned by WestInvest Gesellschaft Für Investmentfonds mbH and Deka Immobilien Investment GmbH, purchase the 419,700 sq ft Rathbone Square, 35/50 Rathbone Place, W1 development which is currently under construction.

Set to be completed in March this year, 242,800 sq ft office space at the property has already been pre-let to Facebook, who will establish their new UK headquarters at the building after taking a 15 year lease.

Great Portland have also revealed that 13,900 sq. ft. of the 25,200 sq. ft. of retail space is currently under offer, while 139 of the 142 residential units have also already been sold.

The agreement marks a significant windfall for Great Portland’s shareholders, who are set to receive a share of the £110m profit that the property firm has made on the scheme.

Toby Courtauld, Chief Executive of GPE, commented: “Rathbone Square is our largest ever development scheme and this sale continues our successful strategy of recycling capital out of assets where we have created significant value.”

GPE was advised on the sale and proposed capital return by CBRE, GM Real Estate, Nabarro, BofA Merrill Lynch, J.P. Morgan Cazenove and Lazard.

Image credit: StartBloggingOnline.com (https://startbloggingonline.com/)

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