Great Capital, Crown Estate in EUR 475m property swap

Great Capital Partnership (GCP) has completed a swap transaction involving three properties valued at £357.6 mln (EUR 475 mln) in the West End of London with The Crown Estates. GCP is a 50:50 partnership between GPE and Liberty International subsidiary Capital & Counties.

In a statement, Great Portland said the three properties, comprising a total of 54,000 m2, were swapped for three new leasehold properties, one freehold and more favourable terms on a number of its other leaseholds.

Although GCP's aggregate net rental income will initially fall by EUR 2 mln per annum, the company said the retained assets' improved interests would provide GCP with a pipeline of 'exceptionally located refurbishment and redevelopment options' to enhance income return over the medium term.

Under the agreement, GCP acquires the freehold interest in 26/40 High Street Kensington, W8. 150 year leasehold interests in 98 Portland Place, W1; 7-8 Park Crescent & 1-15 Park Crescent Mews, W1; and 211 Great Portland Street.

Crown is acquiring the freehold interest in 21 Sackville Street, W1 where the Crown had no previous interest; and the leasehold interests in the following properties where the Crown already had the freehold: Victory House, 99-101 Regent Street, W1; and Kendal House, 203 Regent Street & 1 Conduit Street, W1.

Toby Courtauld, CEO of GPE, said: 'This is an important transaction for GCP in that it not only creates value today, but it also improves our ability to reposition the retained properties over time thereby improving their growth prospects'.

The deal was one of the largest ever property swap in the West End, and coincided with the sale by The Crown Estate of Imperial House, Windsor to a joint venture of Europa Capital's Europa Fund II and St Congar Properties. Click on the link below for more on the transaction.