The Great Capital Partnership ("GCP") announces that it has sold Spirella House, Oxford Circus, London W1, to Calzedonia SPA for £22.9 million.
The price agreed is 12.5% ahead of the 31 March 2009 book value and reflects an equivalent yield approaching 5%. Spirella House is held on a lease from The Crown Estate for a further 123 years. It comprises a retail unit over three floors with five floors of offices above and totals 13,924 sq.ft.
GCP also announces it has acquired new 125 year leasehold interests from The Crown Estate at Foxglove House, 166/168 Piccadilly; Dudley House, 169 Piccadilly; Egyptian House, 170/173 Piccadilly; Empire House, 174/175 Piccadilly; Piccadilly Arcade and 52/53 Jermyn Street; and 54/56 Jermyn Street, all in London W1 in exchange for its existing leases and £12.0 million in cash. The previous leases were for an average term of 69 years and GCP previously paid an average annual rent of 15% of rental value to The Crown Estate. Under the new leases the payment is reduced to 10%. Together, the five buildings form a single block fronting Piccadilly and Jermyn Street and currently comprise 132,500 sq. ft. The new leases provide the ability to carry out a comprehensive redevelopment in due course.
GCP is a 50:50 central London joint venture between Great Portland Estates plc ("GPE") and Liberty International subsidiary Capital & Counties ("C&C") and is managed by GPE.
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"The sale is in line with our usual disciplined approach of recycling capital from mature assets. We bought Spirella House in 2007 and have completed its repositioning. We re-geared the headlease with The Crown Estate as part of a swap deal last year and marked the retail rent to market. We also secured possession of the upper floors, obtained planning consent, and refurbished and substantially let these floors as offices. We are delighted to have re-geared the leases at Piccadilly and Jermyn Street and look forward to working with The Crown Estate on our plans for the regeneration of this historic quarter."
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"We're pleased to have consolidated our relationship with GCP in relation to the Piccadilly/Jermyn Street block and look forward to working with them as they bring forward development proposals for the block, proposals that will complement our broader strategy for regeneration in St James's."
