Derwent London PLC Covent Garden Disposal for £68 Million (7023G)
May 17 2011 - 2:02AM
UK Regulatory
TIDMDLN TIDMCAPC
RNS Number : 7023G
Derwent London PLC
17 May 2011
17 May 2011
Derwent London plc ("Derwent London" / "the Group")
DERWENT LONDON ANNOUNCES DISPOSAL OF FIVE PROPERTIES IN COVENT
GARDEN FOR GBP68 MILLION
Derwent London has exchanged contracts for the disposal of five
freehold properties in Covent Garden, London WC2, to Capital &
Counties Properties ("Capco") for GBP68 million, before costs. The
properties comprise: 19a and 19-26 Floral Street, 26 and 27-32 King
Street and 34 Rose Street. The adjacent properties, which front
King Street and Floral Street, provide 71,900 sq ft (6,680m(2) ) of
office, retail and residential accommodation around a central
courtyard. There are 10 tenants, producing an annual rental income
of GBP2.5 million. The disposal reflects a net initial yield of
3.5%.
The office component comprises 46,000 sq ft (4,275m(2) ) with
tenants including F&C Asset Management and Beale & Co
Solicitors. The retail element is 23,000 sq ft (2,135m(2) ) and
there is 2,900 sq ft (270m(2) ) of residential. Retail tenants
include Moss Bros, Hackett and Carluccio's.
John Burns, Chief Executive Officer at Derwent London,
commented:
"We have owned these properties since 1999 and they have shown
good capital appreciation during this period. However, having
identified a purchaser with major holdings in the immediate area,
we have taken the opportunity to recycle capital with this sale
realising a value significantly above the December 2010
valuation."
Ian Hawksworth, Chief Executive Officer at Capco, stated:
"This acquisition is in line with our strategy to increase our
ownership in Covent Garden through the acquisition of key
properties and brings the value of our estate to over GBP700
million. This deal will allow us to continue to add value to our
holdings through the repositioning of King Street as the home of
contemporary luxury within Covent Garden while also extending our
residential and office portfolio".
-ends-
For further information please contact:
John Burns, Chief Executive Officer, Derwent London: Tel - 020
7659 3000
Kate Holgate, James Rossiter, Brunswick Group: Tel - 020 7404
5959
Notes to editors
Derwent London plc
Derwent London plc is the largest central London focused REIT
with an investment portfolio of GBP2.4 billion as at 31 December
2010. The Group is one of London's most innovative office
specialist property regenerators and investors and is well known
for its established design-led philosophy and creative management
approach to development.
Derwent London's core strategy is to acquire and own a portfolio
of central London property that has reversionary rents and
significant opportunities to enhance and extract value through
refurbishment, regeneration and redevelopment. The Group owns and
manages an investment portfolio of 5.4 million sq ft (500,000m(2)
), as at 31 December 2010, of which 95% is located in central
London, with a specific focus on the West End and the areas
bordering the City of London. Landmark schemes by Derwent London
include Angel Building EC1, Arup Phases II & III W1, Qube W1,
Horseferry House SW1, Johnson Building EC1, Davidson Building WC2
and Tea Building E1.
Derwent London came first in the property sector in the 2010
awards for 'Britain's Most Admired Companies'.
Capital & Counties Properties PLC (Capco)
CAPCO is one of the largest investment and development property
companies that specialises in central London real estate and is a
constituent of the FTSE 250 Index. CAPCO holds 3.3 million square
feet of assets valued at GBP1.4 billion (31 December 2010) in three
landmark London estates: Covent Garden, which has assets valued at
GBP640 million, including the historic Market Building; Earls Court
& Olympia Group and 50% of the Empress State building in Earls
Court amounting to aggregate property assets of GBP481 million, and
The Great Capital Partnership, a joint venture with Great Portland
Estates, which holds prime West End properties of which CAPCO's
share is GBP260 million. The company is listed on the London Stock
Exchange and the JSE, Johannesburg.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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