Derwent London announces disposal of five properties in Covent Garden for £68 million.
Derwent London has exchanged contracts for the disposal of five freehold properties in Covent
Garden, London WC2, to Capital & Counties Properties (“Capco”) for £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
) of office, retail and residential accommodation around a central courtyard. There are
10 tenants, producing an annual rental income of £2.5 million. The disposal reflects a net initial
yield of 3.5%.
The office component comprises 46,000 sq ft (4,275m
) with tenants including F&C Asset
Management and Beale & Co Solicitors. The retail element is 23,000 sq ft (2,135m
) and there is
2,900 sq ft (270m
) 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 £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 while also extending our residential and
Source: derwentlondon.com 17.05.2011