Liberty International subsidiary Capital & Counties Ltd ("C&C") and Great Portland Estates plc ("GPE") announce they have agreed to form The Great Capital Partnership ("The Partnership"), a 50:50 joint venture, to own, manage and develop a number of central London properties and to broaden both parties' exposure in central London.
Based on December 2006 book values, The Partnership will have a starting value of £460 million and comprise over 850,000 sq.ft. of commercial space producing a current net rent of £21.1 million per annum.
C&C are to contribute £299 million of property located in Regent Street, W1; Piccadilly, W1; Jermyn Street, SW1; Wells Street, W1; Tottenham Court Road, W1; Kingsway, WC2; Britton Street, EC1; Wapping Wall, E1 and High Street Kensington, W8. These properties comprise most of C&C's existing central London holdings outside Covent Garden. The properties comprise a total of 605,000 sq.ft. and produce a current net rent of £13.7 million per annum.
GPE will contribute £162 million of property located in Park Crescent, W1; Portland Place, W1; Great Portland Street, W1; Sackville Street, W1 and Broadwick Street, W1. The properties comprise a total of 251,000 sq.ft. and produce a current net rent of £7.4 million per annum. GPE will also pay a balancing payment of £68 million in cash. GPE will asset manage The Partnership.