The properties would comprise: 19a and 19-26 Floral Street, 26 and 27-32 King Street and 34 Rose Street. The adjacent properties, which fronted King Street and Floral Street, provided 71,900 sq ft (6,680m2) of office, retail and residential accommodation around a central courtyard. 

The properties contained 10 tenants, producing an annual rental income of £2.5 million. The acquisition reflected a net initial yield of 3.5% and equivalent yield of 4.9%.

The office component comprised 46,000 sq ft (4,275m2) with tenants including F&C Asset Management and Beale & Co Solicitors. The retail element was 23,000 sq ft (2,135m2) and there was 2,900 sq ft (270m2) of residential.  Retail tenants included Moss Bros, Hackett and Carluccio's.

Ian Hawksworth, chief executive of Capco, said: "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, CEO at Derwent London, said: "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."

Publisher: I-Net Bridge
Source: I-Net Bridge