Business
Acquisition of five properties in Covent Garden
Acquisition of five properties in Covent Garden.
About this update from Shaftesbury Capital Plc
[{"type":"text","content":"\n \nRNS Number : 6960G Capital & Counties Properties Plc 17 May 2011 \n \n\n17 May 2011\n \n \nCAPCO ANNOUNCES THE ACQUISITION OF FIVE PROPERTIES IN COVENT GARDEN FOR £68 MILLION\n \n \nCapital & Counties Properties PLC (\"Capco\") has exchanged contracts for the acquisition of five freehold properties in Covent Garden, London WC2 from Derwent London plc for a cash consideration of £68 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 (6,680m2) of office, retail and residential accommodation around a central courtyard. There are 10 tenants, producing an annual rental income of £2.5 million. The acquisition reflects a net initial yield of 3.5% and equivalent yield of 4.9%.\n \nThe office component comprises 46,000 sq ft (4,275m2) with tenants including F&C Asset Management and Beale & Co Solicitors. The retail element is 23,000 sq ft (2,135m2) and there is 2,900 sq ft (270m2) of residential. Retail tenants include Moss Bros, Hackett and Carluccio's.\n \nIan Hawksworth, Chief Executive of Capco, commented:\n \n\"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 £700 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 whilst also extending our residential and office portfolio.\"\n \nJohn Burns, Chief Executive Officer at Derwent London, commented:\n \n\"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.\"\n \n-ends-\n \nFor further information please contact:\n \nIan Hawksworth, Chief Executive, Capco: Tel - 020 3214 9188\n \nMichael Sandler, Hudson Sandler: Tel - 020 7796 4133\n \nNotes to editors\n \nAbout Capital & ...