Capital & Counties Properties (Capco) is the sole owner of the Empress State Building after acquiring the remaining 50 per cent stake from Land Securities Group for 117m pounds.
The Empress State Building is a 31-storey office building located adjacent to the Earls Court and West Kensington Opportunity Area in London.
It is fully let to the Mayor's Office for Policing and Crime until June 2019. The current rent passing is £14.9 million. The purchase price represents an initial yield of 6.2% and an equivalent yield of 6.0%.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Opportunities to extend or review the existing lease will be considered. Alternatively, the company said the property may be suitable for a residential conversion in line with the Earls Court Masterplan.
"The Empress State Building provides an attractive income stream until 2019 whilst offering a number of options to create further value over the medium-term as the area benefits from the implementation of the Earls Court Masterplan," said Investment Director of Capco, Gary Yardley.
Shares rose 0.63% to 333.10p at 09:03 Thursday.
RD
-
Rents rise at slowest pace for four years – is buy-to-let still worth it?Slowing rental growth and higher property taxes are creating a headache for landlords. Does buy-to-let still offer a good yield?
-
Should you bag a bargain with a half-price investment trust?Twenty-six investment trusts look cheap by historic standards, with some trading at a discount of more than 50%. Are they a bargain or value trap?
