Capital & Counties has exchanged and completed on the sale of the Empress State Building to the Mayor’s Office for Policing and Crime for a total cash consideration of £250 million.
MOPAC is the long-term occupier of the 31 storey, 451,000 sq ft building under a lease due to expire in June 2019.
The consented Earls Court Masterplan includes the retention of the Empress State Building, although Capco had previously obtained permission to convert the building in to 340 flats.
Capco say the disposal allows them to “realise significant cash proceeds which will be used for general corporate purposes including investment in Capco’s central London estates as well as to take advantage of opportunities as they arise”.
Ian Hawksworth, Chief Executive of Capco, commented: “We are pleased to announce the sale of the Empress State Building in line with our strategy of realising value at Earls Court over time. The sale enables Capco, as a strategic long-term investor in London, to support The Mayor’s Office for Policing and Crime in achieving its objectives and to continue our strong working relationship with the GLA.”
The transaction is expected to result in net cash proceeds of approximately £248.5 million. The terms of the disposal provide for Capco to be able to retain certain adjacent land interests in exchange for fulfilling specified conditions in the future. In the event these conditions are met a further £10 million will be paid to Capco.