Great Portland Estates and Capital & Counties have completed a £357.6m property swap with the Crown Estate in London’s West End.
Their joint venture, the Great Capital Partnership, has swapped three of their properties in exchange for three leasehold properties, one freehold and more favourable terms on a number of leaseholds where the Crown is the freeholder.
Both parties said the deal, which is thought to be the largest ever swap in the West End, would provide them with considerable development opportunities.
The Crown Estate gained three freehold properties for its Regent Street portfolio: 21 Sackville Street, where it had no previous interest, as well as leasehold interests in Victory House, 99-101 Regent Street and Kendal House, 203 Regent Street/1 Conduit Street, where it already owns the freehold.
Great Portland and CapCo has gained three leasehold properties, one freehold and amended terms on seven other leaseholds. The freehold interest is in 26/40 High Street Kensington, for which it already held the long-lease interest. The new leasehold interests are for 150 years and are 98 Portland Place; 7-8 Park Crescent & 1-15 Park Crescent Mews; and 211 Great Portland Street.
They have also been granted 150 year leases allowing residential development at 10/12, 13/14, 16/28 Park Crescent, and 92/96 and 77/83 Portland Place.
The deal is the fifth property swap that the Crown Estate has completed on Regent Street since 2002. Swaps represent 70% of its major recent transactions by value.
David Shaw, head of Regent Street strategy and development at the Crown Estate said: 'Combined with the opportunities offered by the Pollen swap in December last year, we now have over 1 million square feet of development potential on Regent Street; potential that will be realised in mixed use developments comprising flagship stores, modern office space and residential units, over the next decade.’
CBRE acted for The Crown Estate.
The Crown Estate has also this week sold a building in Windsor.
It has sold the 47,000 sq ft Imperial House to Europa Fund II and St Congar Properties for an undisclosed sum.
The building, which is set in 4.6 acres of grounds, used to be the headquarters for Rank Hovis McDougall and is currently occupied by Intercontinental Hotels Group Services Company.
Knight Frank and Burges Salmon advised The Crown Estate while Lewis Ellis, Savills and Maples Teesdale advised Europa Capital LLP and St Congar Properties Ltd.