Press Release
THE CROWN ESTATE PROGRESSES ST JAMES’S STRATEGY WITH KEY PICCADILLY AND JERMYN STREET PURCHASES
8 January 2010
The Crown Estate has acquired two short head-lease interests in 77-79 Jermyn Street, SW1, which had four years left until the expiry of the head-lease, and 203-206 Piccadilly, SW1, which had 24 years left. Both leases were purchased for £23 million from Scottish Widows Investment Partnership.
A new 125-year interest in 203-206 Piccadilly was simultaneously sold to IVG Institutional Funds GmbH for £35 million, reflecting a net initial yield of 5.25 per cent. The property totals 6,200 sq. m (67,000 sq. ft) of retail accommodation, split over 11 storeys and is occupied entirely by Waterstone’s Booksellers for a further 24 years. The property is Grade II* listed.
The Jermyn Street property totals 3,200 sq. m (35,000 sq. ft), comprising basement and ground floor leisure/retail use and 2,300 sq. m (25,000 sq. ft) of offices spread over the first to seventh floors was also acquired and will be retained by The Crown Estate.
James Cooksey, Head of Urban Asset Management at The Crown Estate said: “We’re delighted with this significant transaction that provides an excellent opportunity to build on our strategy for improving the retail offer in St James’s, with a focus on Jermyn Street and lower Regent Street. In implementing our St James’s strategy we are seeking to create a cohesive identity for our holdings, to improve the quality of the properties and return and significantly enhance the public realm.”
Tony Gibbon of BH2 advised The Crown Estate and John Olney of H2SO advised Scottish Widows and IVG.
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