Great Capital Partnership (“GCP”), the joint venture between Capital & Counties Properties PLC (“Capco”) and Great Portland Estates plc, has sold 26/40 Kensington High Street, London W8 and 67/75 Kingsway, London WC2.
26/40 Kensington High Street has been sold to The Khoo Teck Puat UK Foundation for £62.5 million. The price agreed is 10.5% ahead of the 31 March 2011 book value and reflects a net initial yield of circa 4.5%. The freehold property is situated at the corner of Kensington High Street and Kensington Palace Gardens and comprises over 120,000 sq ft of mixed use accommodation let to occupiers including TK Maxx, Urban Outfitters, Wagamama and Virgin Active. The property produces an income of approximately £3.0 million per year.
67/75 Kingsway has been sold to Threadneedle UK Opportunities Property II LP for £16.58 million. The freehold property, situated on the western side of Kingsway, comprises over 30,500 sq. ft. of retail and office accommodation. Occupiers include Signature Restaurants trading as Belgo, Subway, SV Life Sciences and Mitsubishi Heavy Industries Europe Ltd. The property produces a current rent of £623,113 per annum rising to £1,070,743 per annum by July 2012 on expiry of the current rent free periods. The price agreed is 9.0% ahead of the 31 March 2011 book value and represents a net initial yield of 3.6%, rising to 6.1% by July 2012.
"These sales are in line with our ongoing approach of recycling capital from mature assets and represents a continuation of the joint venture's strategy to focus on its core West End holdings on Piccadilly, Regent Street and Park Crescent."
