Covent Garden Limited Partnership confirms buyers

The joint venture is understood to have beaten competition in the final round of bidding from Irish investor David Arnold to buy the landmark London asset for slightly more than the quoting price of £400m, reflecting a net initial yield of less than 3.5%.

The Covent Garden Market Limited Partnership, a joint venture between Scottish Widows Investment Partnership and Henderson Global Investors, which is selling the asset, is understood to have made its decision this yesterday. It is expected to exchange contracts tomorrow.

Final bids were submitted by three parties last Monday and the vendors then carried out extensive due diligence on two bids from Capital & Counties and GE and from David Arnold’s D2Private.

Covent Garden comprises the 55,000 sq ft (5,000 sq m) piazza as well as 200,000 sq ft (18,580 sq m) of retail and offices.

Nelson Bakewell and EA Shaw are advising Capital & Counties and GE Real Estate. Joiner Cummings is advising the vendor.