Liberty International subsidiary Capital & Counties and Great Portland Estates has set up a £460m 50:50 joint venture designed to enhance both companies’ exposure to London’s red-hot office market.
The joint venture, which will be called The Great Capital Partnership, will own manage and develop a number of properties across the capital. It will comprise more than 850,000 sq ft (78,966 sq m) of property generating a current net rent of £21.1m.
Capital & Counties has agreed to contribute £299m of property to the partnership. These assets include properties located in Regent Street, W1; Piccadilly, W1; Jermyn Street, SW1; Tottenham Court Road, W1; Kingsway, WC2; and High Street Kensington, W8. These properties comprise most of its existing central London holdings outside Covent Garden.
GPE will contribute £162m of property located in Park Crescent, W1;
Portland Place, W1; Great Portland Street, W1; Sackville Street, W1 and
Broadwick Street, W1. GPE will also pay a balancing payment of £68m in cash and will asset manage The Partnership.
Ian Hawksworth, managing director of Capital & Counties, said: ‘The venture will enable us to increase our involvement in London in partnership with this first class team and is complementary to our significant and expanding wholly owned activities in Covent Garden.’
Toby Courtauld, Chief Executive of GPE, added: ‘The joint venture model has been
very successful for GPE and we are very pleased to be forming this new
partnership with Capital & Counties. We look forward to working with our partner
to drive significant rental and capital growth from this important portfolio.’