Strutt & Parker has acquired Orchard Court on behalf of Great Portland Estates, for £37 million.

This represents a net initial yield of 4.64%, rising to circa 5% following the completion of outstanding rent reviews and lease renewals. The property occupies the entire Eastern side of Portman Square and is comprised of 47,762 sq ft of retail and office space, with a capital value of £775 per sq ft. 

Orchard Court is currently let to 14 tenants with an average weighted unexpired lease term of five years and is held on a long lease, expiring in 2101. The total rental income is currently £1.81 million per annum, equating to £39 per sq ft on average.

Charles Thompson, an associate in Strutt & Parker’s West End Investment team, said: “This transaction continues the trend for significant demand in the West End for well-located office and retail space with a good initial yield. Orchard Court is a strong investment which fits all the investors’ requirements, providing them with a growth opportunity in a good and improving location”.