Capital & Counties Adds to London Covent Garden Assets With $110 Purchase

Capital & Counties Properties Plc (CAPC), the company formed in last year’s breakup of Liberty International, acquired five properties in the Covent Garden neighborhood of London for 68 million pounds ($110 million).

The properties near central London’s former fruit and vegetable market were bought from Derwent London Plc (DLN) and they will add 2.5 million pounds in annual rental income, according to a statement. The buildings provide a mix of office space, shops and residences.

Two weeks ago, CapCo raised 101 million pounds in a share sale to finance acquisitions as it seeks to reposition Covent Garden as a location for high-end retail and leisure outlets in London’s West End district. The company attracted 36 new and higher-paying tenants to Covent Garden last year, including Apple Inc., helping lift the appraised value of its properties there by 14 percent to 640 million pounds.

CapCo fell 7.5 pence, of 4.3 percent, to 168.1 pence in London trading yesterday, trimming the value of the company to 1.15 billion pounds.

To contact the reporter on this story: Simon Packard in London at packard@bloomberg.net

To contact the editor responsible for this story: Andrew Blackman at ablackman@bloomberg.net

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