MWB's 68%-owned unit, Liberty has exchanged contracts for the sale of the freehold interest in its 125,000 sq ft (11,600 m2) flagship store on Great Marlborough Street, London W1, for £41.5 mln (EUR 46 mln), to Sirosa Liberty. The sale price reflects an initial yield of 4.8%.
MWB's 68%-owned unit, Liberty has exchanged contracts for the sale of the freehold interest in its 125,000 sq ft (11,600 m2) flagship store on Great Marlborough Street, London W1, for £41.5 mln (EUR 46 mln), to Sirosa Liberty. The sale price reflects an initial yield of 4.8%.
On completion of the sale, Liberty will lease back the store and continue to operate it. Under the terms of the transaction, Liberty will take an institutional 30-year lease on the building at an initial annual rent of £2.1 mln, with five yearly fixed rent reviews.
The freehold of the flagship store was valued at £30.25 mln at the end of 2009, with the sale price representing a substantial surplus in a sign of increased demand for prime freehold property assets in Central London.
The sale proceeds will be used by Liberty to repay its bank debt and other liabilities, including short-term loans from MWB, and to provide additional financial resources for the company.
