Land Securities has sold a 50% stake in one of West London’s biggest properties Empress State to Liberty International.
The half share in the 470,000 sq ft 30-storey building was sold for £107.75m. It is wholly let to the Metropolitan Police at a rent of £12.27m a year with annual increases in line with inflation.
Formerly the building was home to the Ministry of Defence.
The new partnership has also refinanced the holding through a joint £159m facility with Abbey UK Corporate Banking and Eurohypo.
Richard Linnell, head of investment management for Land Securities’ London Portfolio, said: ‘We have held the asset for a number of years but saw limited asset management opportunities in the near future.
‘However, the joint venture with Liberty offers us the ability to realise value from the asset while being well placed to benefit from the continued attraction of this part of London and our combined knowledge of the area.’
Gary Yardley, Chief Investment Officer of Capital & Counties, said: ‘Empress State represents a major extension to our West London holding in and around Earls Court, and provides significant opportunities for the group in both the medium and long term. The property is a major landmark within West London and will compliment our neighbouring ownership of the Exhibition Centre significantly in the future.’
Last July, Capital & Counties - the non-shopping centre arm of retail giant Liberty International - bought a 50% stake in the 40 acre Earls Court & Olympia site from St James Capital for £190m. It has the potential for a 7m sq ft mixed-use scheme.
Land Securities was advised by Franc Warwick and King Sturge advised Capital & Counties.