£421m sale of Covent Garden market confirmed

The £421m sale of Covent Garden market has been confirmed today.

Capital & Counties confirmed this morning its purchase of the 7 acre (2.8 ha) area in Covent Garden.

The 450,000 sq ft (41,806 sq m) market area was held in The Covent Garden Market Limited Partnership fund whose shareholders were Scottish Widows Investment Partnership and Henderson Global Investors.

The fund was set up in July 2000 with the purchase of Covent Garden Market and substantially enlarged in April 2002.

Current passing rents for the 31-property asset are around £17.2m increasing, once lettings of currently vacant space have been concluded, to provide a running yield on cost of around 4.5%.

Capital & Counties already owns retail, office and residential property on Long Acre and Floral Street worth over £50m.

John Saggers, managing director of Capital & Counties said: ‘Capital & Counties’ Central London expertise will be enhanced by the retail capabilities and extensive knowledge and retailer relationships of fellow Liberty International subsidiary, Capital Shopping Centres. As long-term investors, we look forward to working with the Covent Garden Area Trust and other local stakeholders in finding ways to evolve and upgrade the quality, offer and value of the Market and Piazza as well as the surrounding streets for the benefit of all.’

Capital & Counties had been in talks with GE to make a joint venture purchase of Covent Garden but talks ended during the final weeks of the bidding process.

Capital & Counties were represented by EA Shaw and Nelson Bakewell. Joiner Cummings advised the fund.