Thursday March 27, 08:53 AM
Great Portland forms JV with BP Pension Fund
LONDON (ShareCast) - Property group Great Portland Estates (LSE: GPOR.L - news) has formed a new 50:50 joint venture with Ropemaker
Properties Limited, the property nominee of the BP (LSE: BP.L - news) Pension Fund, which will be managed by GPE.The Great Ropemaker Partnership JV has bought a development site at 240 Blackfriars Road, SE1 from GPE for an initial consideration of £20.5m. There will also be an additional £2m payable in enhanced fees if the site is redeveloped, while a further £5m in priority payments become due if various performance hurdles are met. The valuation at the end of 2007 was £27.5m. An 18 storey 207,000 sq ft office retail and residential scheme is being proposed at the junction of Blackfriars Road and Southwark Street following the demolition of the existing 34,300 sq ft buildings. "It (Frankfurt: A0MLX5 - news) allows us to spread our development risk at Blackfriars Road and it forges a new relationship with a high quality partner opening up new avenues for future business together," GPE boss Toby Courtauld said of the deal.
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