(RTTNews) - British Land Co. plc (BRLAF.PK, BTLCY.PK, BLND.L) announced Thursday its agreement to sell a 75% interest in a portfolio of three buildings in the West End to Allianz Real Estate, acting on behalf of several Allianz Group companies, for 401 million pounds.
The transaction represents a blended net initial yield of 4.32%, a premium to September book value and is expected to complete in January.
Under the deal, British Land will form a new joint venture with Allianz, with British Land's interest at 25% and Allianz's at 75%.
The company will continue to manage all three buildings and will receive an asset management fee.
The portfolio includes three buildings, 10 Portman Square, Marble Arch House and York House, all of which are in Marylebone. The assets had a combined valuation of 508 million pounds, at 100%, as of September 30. The total net rent attributable is 21 million pounds.
The company noted that prior to any reinvestment the transaction will reduce underlying earnings per share by around 1.4 pence.
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