The Great Capital Partnership, the 50/50 Joint Venture between Great Portland Estates plc and Capital & Counties Properties PLC announces that it has exchanged contracts on the sale of its last remaining asset, Park Crescent West.
Subject to freeholder approval, PCW Property Holding Limited advised by Amiri Capital, has acquired Park Crescent West for £105 million (approx. €123 million). The sale price is 8.6% ahead of both the December 2012 and March 2013 valuations and reflects a net initial yield of circa 2% and a capital value of £813 per ft² on the net internal area.
Park Crescent West includes 77/83 Portland Place, 16 Park Crescent, 18/25 Park Crescent, 22 Park Crescent and 26 Park Crescent. The crescent comprises a mix of commercial, court and residential uses and extends to a total of 129,165 ft² (approx. 12,000 m²) NIA. Current tenants include the Royal Institute of British Architects, the Institute of Chartered Secretaries and Administrators and the Secretary of State for the Environment.
The properties generate an annual income of circa £2.2 million and are held on a long lease from The Crown Estate expiring in December 2157 at a current ground rent of £15,000 per year. The headlease provides that the premises can be used for a variety of uses including residential.
Ian Hawksworth, Chairman of GCP and Chief Executive of Capco commented: “Following the sale of Park Crescent East in April 2012, this disposal represents the culmination of GCP’s asset sales. In line with the strategy it allows significant capital to be returned to the joint venture partners for re-allocation within their respective groups.”