Great Portland Ests. GPOR GCP sells Jermyn Street Estate for £120m

  Great Portland Ests. (GPOR) - GCP sells Jermyn Street Estate for £120m

RNS Number : 2120I
Great Portland Estates PLC
23 July 2012

23 July 2012

Great Capital Partnership Sells Jermyn Street Estate for £120 million.

The Great Capital Partnership ("GCP"), the 50/50 Joint Venture between Capital
& Counties Properties PLC ("Capco") and Great Portland Estates plc ("GPE")
announces today that it has exchanged contracts to sell The Jermyn Street
Estate, SW1 to GPE for £120 million or £60 million for the half share GPE does
not already own.

The Estate consists of five properties, 54-56 Jermyn Street, Dudley House,
Egyptian House, Empire House and Foxglove House. All these assets are held on
separate 125 year headleases from The Crown Estate at a combined fixed
headrent of £675,000 per annum until September 2014, thereafter reverting to
10% of rents received.

The properties comprise a mix of office and retail accommodation and extend to
a total circa 133,000 sq. ft. with frontages to both Piccadilly and Jermyn
Street. There are currently 62 tenants across the estate including Standard
Chartered Bank, Wiltons, Starbucks and Kent & Curwen. GCP completed a
comprehensive refurbishment of circa 27,700 sq. ft. of vacant office
accommodation in June 2012, of which 3,800 sq. ft. (14%) has been let so far.
The properties generate a current net rental income of circa £4.5 million
after payment of the headrent and have an estimated net rental value today of
£7.3 million. The sale reflects a net initial yield of 3.7% and net
reversionary yield of 6.0% after the deduction of actual costs incurred in the
transaction. The Estate was sold at a 3.3% premium on the June 2012

Completion of the purchase is conditional on approval from both the freeholder
and lenders to GCP.

Ian Hawksworth, Chairman of GCP and Chief Executive of Capco commented, "The
sale of The Jermyn Street Estate releases capital back into the Joint Venture
and allows our partners GPE to further expand their Piccadilly portfolio in
light of their recent acquisition of French Railways House and 50 Jermyn
Street. GCP will consider further disposals on a case by case basis over the
remainder of this year."

Toby Courtauld, Chief Executive of GPE said, "We are delighted to have bought
the half of the Jermyn Street Estate we didn't already own. With our recent
acquisition adjoining the properties, this gives us circa 185,000 sq. ft. of
prime real estate with opportunities to grow income in the short term. In the
longer term, the combined properties offer a superb development opportunity in
one of the West End's premier sub markets, with the potential to deliver
material uplift in both quality and quantity of accommodation on the site."


Capital & Counties Properties PLC

Ian Hawksworth, Chief
Executive0203 214 9188

Great Portland Estates

Toby Courtauld, Chief
Executive020 7647 3042

Hudson Sandler (Capco Financial PR)

020 7796 4133

RLM Finsbury Group (GPE Financial PR)

020 7251 3801

020 7251 3801

Notes to editors:

About Capital & Counties Properties PLC (Capco):

CAPITAL &  COUNTIES  PROPERTIES PLC  is  one  of the  largest  companies  that 
specialises in central London real estate and is a constituent of the FTSE-250
Index. CAPITAL &  COUNTIES PROPERTIES  PLC holds  3.3 million  square feet  of 
assets valued  at £1.6  billion (as  at 31  December 2011)  in three  landmark 
London estates:  Covent  Garden, which  has  assets valued  at  £808  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 £574  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 £241  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


DISRTMRTMBJTBPT -0- Jul/23/2012 06:00 GMT
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