Liberty International, the JSE-listed property group, on Friday beat off at least four international financial giants to buy up the retail heart of London's famous Covent Garden for R6-billion.

The company paid almost R1-billion an acre for a cluster of 39 properties in the West End, including the iconic Covent Garden market, through its non-shopping-centre property arm, Capital & Counties.

It beat off other bidders by spending about £60-million (about R780-million) more than the initial asking price.

But far from being a passive landlord in the district - which is cocooned in heritage-preservation rules - Liberty is to shake up the Garden to boost turnover.

The move is sure to excite Liberty's SA shareholders. They make up 45% of its ownership and Liberty is the only offshore property investment that does not require them to apply for foreign-exchange allowances.

Gary Marcuccilli, Capital's director for new business, said the company would embark on a five-year plan to change the mix and quality of tenants in the Garden. Capital wants to reduce the number of window-shopping tourists and increase trade derived from local shoppers and diners.

The contracts of tenants who did not conform to Liberty's vision would be ended and incentives would probably be introduced to attract up-market shops and restaurants to fill the gaps.

The SA-born company now has a presence on Regent Street, in Piccadilly Circus and in almost the whole of Covent Garden. Marcuccilli estimated the value of Liberty's central London assets at about R10-billion, raising the worth of the company's property holdings in Britain to about R100-billion.

The most recent deal means that Capital will have to deal with tenants ranging from the London Transport Museum to the trendy Rock Garden nightclub and temporary tattoo vendors. Its new famous-brand tenants include HMV, French Connection and Hugo Boss which, at the corner of the chic James and Long Acre streets, will pay one of London's highest rentals of about R80000 a square metre.

Business Times
Publisher: I-Net Bridge
Source: I-Net Bridge