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Premier House at 73-89 Oxford Street in June 2011. View to the building from Oxford Street

Premier House at 73-89 Oxford Street in June 2011. View to the building from Oxford Street

June 2011
Premier House front facade.

Premier House front facade.

June 2011
Premier House on Oxford Street.

Premier House on Oxford Street.

June 2011

73-89 Oxford Street

Address:
73-89 Oxford Street, London W1D 2ES
Type:
Commercial
Completion:
April 2017
Area:
90,500 sq ft
Offices:
1
Retails:
1
Viewed:
4807

Description of 73-89 Oxford Street

73-89 Oxford Street is a mixed-use development on Oxford Street, London W1.

The 88,100 sq ft commercial development is located at the junction of Oxford Street and Dean Street, opposite the Tottenham Court Road Crossrail Station in London W1.

The development consists of 5,150 sq m of high quality ‘Grade A' flexible office space and 3,100 sq m of retail space at street and lower levels.

2016 - GPE sells the development to Norges Bank Real Estate Management.

2016 April - GPE acquired for £71.0 million the entire issued share capital of 73/77 Oxford Street Ltd, a debt free company, owning three properties in London's West End, including 73/89 Oxford Street. Before acquisition, GPE had a 250-year head lease from February 2011, geared to 10% of rents received following practical completion of the scheme; the head rent prior to PC is £620,000 per annum. As a result of the purchase, we have created a 100% prime asset, adjacent to a Crossrail station, in one of the London's most exciting locations;


Sources:
- Lifschutz Davidson Sandilands www.lds-uk.com

Connected Companies

Buildington Rating & Notes

News & Comments: (8)

Buildington
2016/11/17 08:09

Great Portland Estates plc has completed the sale of the freehold of 73-89 Oxford Street and 1 Dean Street to Norges Bank Real Estate Management for a price of £276.5 million, reflecting a net initial yield to the buyer of 3.2%.

The office and retail development is under construction with practical completion expected in Q2 2017. The scheme is pre-let to New Look Retailers Ltd, Benetton Group S.r.l and Moneysupermarket.com Group PLC with a WAULT of 17.0 years. The rent on completion will be £9.74 million per annum (subject to final measurement on PC).

NBREM has paid £205.2 million, with the balance of the purchase price payable on completion of the leases following PC. The price NBREM will pay allows for a deduction in lieu of interest on their initial capital outlay until PC at a rate of 3.2% per annum and an allowance for tenant rent free periods. Based on the current cost and programme, GPE will receive two further payments on completion of the leases in July 2017 of £46.2 million in deferred consideration and £25.1 million for reimbursement of the development costs to complete the scheme.

Toby Courtauld commented, "Oxford Street has been an exceptional project for us and this sale continues our strategy of recycling capital out of assets where we have created significant value. Having secured an attractive planning permission, pre-let the building and enhanced our interest through the purchase of the freehold earlier this year, this sale crystallises a whole life capital return of 75% and an annualised unlevered IRR of 28.4%."

Buildington
2016/07/07 11:39

At 73/89 Oxford Street, W1, which will deliver 90,700 sq ft of new-build retail and office space directly opposite the Dean Street entrance to the Tottenham Court Road Crossrail station, the construction of the building is underway and on programme.

Following the pre-let of all the retail space (47,100 sq ft) to New Look and Benetton, 63% of the scheme's ERV has been secured. The marketing campaign for the 43,600 sq ft of offices commenced in April 2016, and GPE currently has three of the four office floors under offer.

Source: Great Portland Estates trading update for the quarter to 30 June 2016 www.gpe.co.uk

Buildington
2016/01/13 06:14

The remaining 15,300 sq. ft. flagship retail store at 73-89 Oxford Street has been pre-let to Benetton Group S.r.l. at £2.6 million per annum. Benetton will take a 20 year lease and will trade alongside New Look, to whom GPE pre-let a 31,800 sq. ft. store in March 2015. This leaves 43,400 sq. ft. of Grade A offices in the development, which are due for completion in April 2017, where Facebook have an option to occupy which expires on 31 March 2016.

Neil Thompson, Portfolio Director of GPE said “We are delighted to welcome Benetton into the portfolio. Securing one of the world’s top retailers in this high quality development, opposite a Crossrail station, continues the exciting regeneration of the eastern end of Oxford Street.

This transaction was amongst a number of strong leasing successes for the Group this quarter, and with a further £2.7 million of space currently under offer, our 1.2 million sq. ft. development pipeline continues to attract significant leasing interest. We look forward to further profitable pre-lettings.”

GPE will issue a Trading Update for the quarter to 31 December 2015 and be hosting an event for investors and analysts at Oxford House, 76 Oxford Street, W1 on 10 February 2016.

Buildington
2015/11/11 11:20

The demolition of the existing building has now completed and the main contract works have commenced at 73/89 Oxford Street, which will deliver 90,700 sq ft of new-build retail and office space, reports Great Portland Estates.

Following the pre-let of 31,800 sq ft to New Look at a zone A rent of £600 per sq ft in March 2015 and subsequent securing of a change of planning use for the second floor from office to retail during the period, 42.6% of the scheme's GDV is already pre-let.

The scheme is due for completion in April 2017 and GPE sees strong interest in the remaining 15,300 sq ft of retail space which sits directly opposite the Dean Street entrance to the Tottenham Court Road Crossrail station. Based on current market assumptions, the scheme is expected to deliver GPE a profit on cost of 25.4%.

Source: Great Portland Estates plc Half Year Results 2015 www.gpe.co.uk

Buildington
2015/07/08 12:35

Great Portland Estates is approximately half way through the demolition of the existing building at 73/89 Oxford Street and the main contract works are due to commence in September 2015.

Following the pre-let of 31,800 sq ft to New Look at a zone A rent of £600 per sq ft in March 2015 and subsequent securing of a change of planning use for the second floor from office to retail during the quarter, 40% of the scheme’s ERV is already secured.

Source: Great Portland Estates trading update for the quarter to 30 June 2015.

Buildington
2015/05/22 07:27

In January 2015, GPE committed to the fully consented development scheme at 73/89 Oxford Street, which will deliver 90,700 sq ft of new-build retail and office space directly opposite the Dean Street entrance to the Tottenham Court Road Crossrail station.

With vacant possession achieved, strip-out of the existing property has completed with full demolition works now underway and the main construction contract agreed with Brookfield Multiplex. Following a strong valuation performance over the last 12 months (up 53%), based on current market assumptions, the scheme is expected to deliver GPE a profit on cost of 14.1% on planned completion in spring 2017.

Shortly after committing to the development of 73/89 Oxford Street, GPE pre-let the majority of the retail space as a new flagship store to fast-fashion brand New Look. On completion of the development, they will occupy 31,800 sq ft on basement, ground, first and second floors on a 20 year lease, paying rent of £3.65 million p.a. after receiving 12 months rent free from lease commencement. The letting was conditional upon GPE securing a change of use on the second floor from office to retail which they received in May 2015.

Source: GPE Annual Results 2015 www.gpe.co.uk

Buildington
2015/03/04 11:32

Great Portland Estates plc has pre-let a new flagship retail store in its development at 73/89 Oxford Street to fast-fashion brand New Look Retailers Limited.

On completion of the development, anticipated in April 2017, New Look will occupy 31,800 sq. ft. on basement, ground, first and second floors and will take a 20 year lease, paying rent of £3,650,000 per annum after receiving 12 months rent free from lease commencement. The letting is conditional upon GPE securing a change of use on the second floor from office to retail. Following this pre-letting, GPE has a second flagship store of 15,300 sq. ft. and 43,400 sq. ft. of Grade A offices at 1 Dean Street still to lease.

GPE commenced the 90,500 sq. ft. new-build development at 73/89 Oxford Street, W1, directly opposite the Dean Street entrance to the Tottenham Court Road Crossrail station, earlier this year. This development is the latest in almost 600,000 sq. ft. of schemes GPE is working on at the East End of Oxford Street, an area expected to benefit from significant regeneration ahead of Crossrail opening in 2018. GPE’s total development pipeline is 2.2 million sq. ft. with potential total capital expenditure to come for the committed and near-term schemes of £497 million over the next three years, which includes the 410,400 sq. ft. mixed use development at Rathbone Square, W1.

Commenting on the pre-letting, Toby Courtauld, Chief Executive of GPE said “We are delighted to have secured New Look for our latest development at 73/89 Oxford Street, W1. We are creating a world class flagship store for them in this outstanding building, in an increasingly exciting part of Oxford Street. The terms reflect the strong retail prospects in this part of Oxford Street and are positive for GPE’s ongoing and future developments.”

Danny Barrasso, UK Managing Director of New Look said “We’re very excited to be working with Great Portland Estates to deliver a world class New Look flagship store. This store, in what is going to be a prime retail location, strengthens our position as we continue to grow the New Look brand both in the UK and internationally.”

Buildington
2014/11/13 21:37

Demolition works are expected to commence in early 2015 on achieving vacant possession and Great Portland Estates is progressing the pre-letting initiatives for the 33,500 sq ft of retail space which sits directly opposite the Dean Street entrance to the Tottenham Court Road Crossrail station.

Source: Great Portland Estates plc, Half Year Results 2014, 13. November 2014

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