Capital & Counties Properties PLC (“Capco”) has completed the sale of the Empress State Building (“ESB”) to The Mayor’s Office for Policing and Crime (“MOPAC”) for total cash consideration of €285.5m (£250m). The buyer is a long-term occupier of the building with a lease due to expire in June 2019.
ESB is a 451,000 ft² (NIA), 31-storey, office building located in Earls Court. The consented Earls Court Masterplan is one of the most important mixed-use development opportunities in central London and is based on retention of ESB’s current structure. The disposal enables Capco to realise significant cash proceeds which will be used for general corporate purposes including investment in Capco’s central London estates. The disposal has resulted in a reduction in Capco’s pro forma LTV as at 31 December 2017 from 21% to 15%.
Ian Hawksworth, Chief Executive of Capco, commented: “We are pleased to announce the sale of the Empress State Building in line with our strategy of realising value at Earls Court over time. The sale enables Capco, as a strategic long-term investor in London, to support The Mayor’s Office for Policing and Crime in achieving its objectives and to continue our strong working relationship with the GLA.”
