London and Stamford forms central London JV

Property company London and Stamford has bought a stake in a residential block adjacent to the Chelsea Barracks development in south-west London.

The acquisition of Moore House for £147m is being channelled through a newly formed residential joint venture focused on central London, in which it has a 40% interest. London & Stamford will fund its £58.8m share of the acquisition out of existing resources.

The seller is an outfit called Project Red, a subsidiary of Qatari Diar.

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The property forms part of the Grosvenor Waterside Development and occupies a position at the front of the development on Ebury Bridge Road.

Raymond Mould, Chairman of London & Stamford, said: "The central London residential market continues to show signs of strong rental and capital growth and we are delighted to have acquired this prime property, the first for our newly formed residential joint venture."

The property company said last month that it has firepower of around £900m at its disposal to beef up its property portfolio.

Broker Jefferies suggested the company needs to invest around £800m just to get earnings up to the level where they cover the company's dividend payment.

BS