Capital & Counties Properties (Capco) has confirmed media reports that it is in talks on a potential sale of the Empress State Building (ESB) in London.
The London and Johannesburg-listed property developer's statement came in response to a report in Property Week that the company was to sell the high rise building in Earl's Court to current tenant, The Mayor's Office for Policing and Crime (MOPAC). The investment volume mentioned was £240 mln (€270 mln).
In its statement, Capco noted the press speculation and said its discussions with MOPAC related to its occupational requirements at the ESB. 'Options under consideration include a lease extension and the acquisition by MOPAC of the freehold interest in the building,' Capco said.
The company added: 'At this stage there is no certainty that any transaction will be agreed. Further announcements will be made in due course as appropriate.'
A potential sale to MOPAC would represent a major change on Capco's original plan for the ESB as part of the wider regeneration of the Earl's Court district.
Built between 1958 and 1961 on the site of the former Empress Hall and ice rink as a commercial building, ESB was briefly the tallest commercial building in London until Millbank Tower was built in 1962. MOPAC's current lease expires in 2019.
Capco received approval from the London Borough of Hammersmith & Fulham in April 2014 to change the use of the site from commercial to residential. The developer planned to integrate the ESB into its Earls Court Masterplan, adding almost 54,000 m2 of residential floor space. This would involve the creation of 440 new homes, including 100 in the 'affordable' range.
