To view the PDF file, sign up for a MySharenet subscription.

CAPITAL & COUNTIES PROPERTIES PLC - Great Capital Partnership Sells Jermyn Street Estate for #120 million

Release Date: 23/07/2012 08:00
Code(s): CCO
Wrap Text
Great Capital Partnership Sells Jermyn Street Estate for £120 million

Capital & Counties Properties PLC
(Incorporated and registered in the United Kingdom and Wales with registration Number 07145041
and registered in South Africa as an external company with Registration Number 2010/003387/10)
JSE code CCO
ISIN GB00B62G9D36

23 July 2012

Great Capital Partnership Sells Jermyn Street Estate for £120 million.

The Great Capital Partnership (“GCP”), the 50/50 Joint Venture between Capital & Counties
Properties PLC (“Capco”) and Great Portland Estates plc (“GPE”) announces today that it has
exchanged contracts to sell The Jermyn Street Estate, SW1 to GPE for £120 million or £60 million for
the half share GPE does not already own.

The Estate consists of five properties, 54-56 Jermyn Street, Dudley House, Egyptian House, Empire
House and Foxglove House. All these assets are held on separate 125 year headleases from The
Crown Estate at a combined fixed headrent of £675,000 per annum until September 2014, thereafter
reverting to 10 percent of rents received.

The properties comprise a mix of office and retail accommodation and extend to a total circa 133,000
sq. ft. with frontages to both Piccadilly and Jermyn Street. There are currently 62 tenants across the
estate including Standard Chartered Bank, Wiltons, Starbucks and Kent & Curwen. GCP completed a
comprehensive refurbishment of circa 27,700 sq. ft. of vacant office accommodation in June 2012, of
which 3,800 sq. ft. (14 percent) has been let so far. The properties generate a current net rental
income of circa £4.5 million after payment of the headrent and have an estimated net rental value
today of £7.3 million. The sale reflects a net initial yield of 3.7 percent and net reversionary yield of
6.0 percent after the deduction of actual costs incurred in the transaction. The Estate was sold at a
3.3 percent premium on the June 2012 valuation.

Completion of the purchase is conditional on approval from both the freeholder and lenders to GCP.

Ian Hawksworth, Chairman of GCP and Chief Executive of Capco commented, “The sale of The
Jermyn Street Estate releases capital back into the Joint Venture and allows our partners GPE to
further expand their Piccadilly portfolio in light of their recent acquisition of French Railways House
and 50 Jermyn Street. GCP will consider further disposals on a case by case basis over the remainder
of this year.”

Toby Courtauld, Chief Executive of GPE said, “We are delighted to have bought the half of the Jermyn
Street Estate we didn’t already own. With our recent acquisition adjoining the properties, this gives us
circa 185,000 sq. ft. of prime real estate with opportunities to grow income in the short term. In the
longer term, the combined properties offer a superb development opportunity in one of the West End’s
premier sub markets, with the potential to deliver material uplift in both quality and quantity of
accommodation on the site.”


Contacts

Capital & Counties Properties PLC
Ian Hawksworth, Chief Executive                                          0203 214 9188

Great Portland Estates plc
Toby Courtauld, Chief Executive                                          020 7647 3042

Hudson Sandler (Capco Financial PR)
Michael Sandler                                                          020 7796 4133

RLM Finsbury Group (GPE Financial PR)
James Murgatroyd                                                         020 7251 3801
Gordon Simpson                                                           020 7251 3801


Sponsor
Merrill Lynch SA (Pty) Limited


Notes to editors
About Capital & Counties Properties PLC (Capco)

CAPITAL & COUNTIES PROPERTIES PLC is one of the largest companies that specialises in central
London real estate and is a constituent of the FTSE-250 Index. CAPITAL & COUNTIES PROPERTIES
PLC holds 3.3 million square feet of assets valued at £1.6 billion (as at 31 December 2011) in three
landmark London estates: Covent Garden, which has assets valued at £808 million, including the
historic Market Building; Earls Court & Olympia Group and 50 percent of the Empress State building in
Earls Court amounting to aggregate property assets of £574 million; and the Great Capital
Partnership, a joint venture with Great Portland Estates, which holds prime West End properties of
which Capco’s share is £241 million. The company is listed on the London Stock Exchange and the
JSE, Johannesburg.

www.capitalandcounties.com

Date: 23/07/2012 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story