Capital & Counties Properties (Capco) has exchanged and completed on the sale of the Empress State Building in London's Earls Court for a total cash sum of £250 mln (€284 mln).
ESB, a 451,000 sq ft (41,900 m2), 31-storey, office building, has been sold to The Mayor’s Office for Policing and Crime (MOPAC), the long-term occupier of the building under a lease due to expire in June 2019.
The asset, which was valued at £220 mln at year-end 2017, generated net rental income of £16.6 mln in 2017.
Capco said that it will use the cash proceeds for general corporate purposes including investment in its central London estates as well as to take advantage of new opportunities.
The disposal has resulted in a reduction in Capco’s pro forma LTV from 21% as at 31 December 2017 to 15% at present.
Ian Hawksworth, chief executive of Capco, commented: 'We are pleased to announce the sale of the Empress State Building in line with our strategy of realising value at Earls Court over time. The sale enables Capco, as a strategic long-term investor in London, to support The Mayor’s Office for Policing and Crime in achieving its objectives and to continue our strong working relationship with the GLA.'
