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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