| Tue 17 May 2011, 8:00 | | CCO - Capital & Counties Properties PLC - Capco announces the acquisition of |
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CCO
CCO - Capital & Counties Properties PLC - Capco announces the acquisition of
five properties in Covent Garden for GBP68 million
Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and Wales with registration
Number 07145041 and registered in South Africa as an external company with
Registration Number 2010/003387/10)
JSE code: CCO
ISIN: GB00B62G9D36
CAPITAL & COUNTIES PROPERTIES PLC ("CAPCO")
Press Release
CAPCO ANNOUNCES THE ACQUISITION OF FIVE PROPERTIES IN COVENT GARDEN FOR GBP68
MILLION
Capital & 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 GBP68 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 GBP2.5 million. The acquisition reflects a net initial
yield of 3.5% and equivalent yield of 4.9%.
The 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.
Ian Hawksworth, Chief Executive of Capco, commented:
"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 GBP700 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."
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."
-ends-
17 May 2011
For further information please contact:
Ian Hawksworth, Chief Executive, Capco: Tel - 020 3214 9188
Michael Sandler, Hudson Sandler: Tel - 020 7796 4133
Sponsor:
Merrill Lynch SA (Pty) Limited
Notes to editors
About Capital & Counties Properties PLC (Capco)
CAPCO is one of the largest investment and development property companies that
specialises in central London real estate and is a constituent of the FTSE 250
Index. CAPCO holds 3.3 million square feet of assets valued at GBP1.4 billion
(31 December 2010) in three landmark London estates: Covent Garden, which has
assets valued at GBP640 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 GBP481 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 GBP260 million. The company is listed
on the London Stock Exchange and the JSE, Johannesburg.
Derwent London plc
Derwent London plc is the largest central London focused REIT with an investment
portfolio of GBP2.4 billion as at 31 December 2010. The group is one of London`s
most innovative office specialist property regenerators and investors and is
well known for its established design-led philosophy and creative management
approach to development.
Derwent London`s core strategy is to acquire and own a portfolio of central
London property that has reversionary rents and significant opportunities to
enhance and extract value through refurbishment, regeneration and redevelopment.
The Group owns and manages an investment portfolio of 5.4 million sq ft
(500,000m2), as at 31 December 2010, of which 95% is located in central London,
with a specific focus on the West End and the areas bordering the City of
London. Landmark schemes by Derwent London include Angel Building EC1, Arup
Phases II & III W1, Qube W1, Horseferry House SW1, Johnson Building EC1,
Davidson Building WC2 and Tea Building E1.
Derwent London came first in the property sector in the 2010 awards for
`Britain`s Most Admired Companies`.
Capco Covent Garden Estate Map
(The map has been removed. Please refer to the company`s website
www.capitalandcounties.com)
Date: 17/05/2011 08:00:13 Produced by the JSE SENS Department.
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