GPE buys Minerva House for £60m

Wed 12 December 2012, 12:27 pm

Great Portland Estates has bought a prominent office and residential building on the South Bank of the River Thames for £60 million.

It said six-floor Minerva House, which is adjacent to Southwark Cathedral, had office lease agreements lasting almost 10 years, offering short-term refurbishment potential and long-term development opportunities.

The office space, which makes up more than 90 per cent of the building’s 103,600 sq feet of space, are leased to Winkworth Sherwood LLP and Ipsos Mori UK.

Toby Courtauld, chief executive of Great Portland Estates, said Minerva House was the company’s first purchase following a £140 million equity placing agreed last month.

“This property meets our objectives of an accretive initial yield with an attractive prospective total return due to its low rents and multiple refurbishment possibilities,” he said.

“Longer term, this river-fronting site provides us with significant development potential.”

Great Portland made the acquisition from Minerva Trust, SREIT Property and Clerical Medical Managed Funds.