The property was sold at around a 30% premium to its market value atDecember 31, 2003, which was $34.5 million, the group said, therefore putting the sale price at about $45 million. The asset produced approximately $2.9million of net property investment income in 2003.
Capital & Counties managing director John Saggers commented: "Until recently, C&C owned only 50% of this asset, but in June lastyear the remaining 50% was acquired from the joint owner. We took full control of the property to enable us to have the freedom to embark on variousvalue-adding strategies.
"However, a number of approaches were made to us by investors interested in the acquisition of this high profile asset and we decided to respond to that demand in the currently strong US investment market."
"The property was sold at around a 30% premium to the market value at31 December 2003."
"We agreed the terms of the disposal early in 2004 and completion has now taken place. We are looking to re-invest the proceeds in property investments in the San Francisco Bay Area and are already negotiating on a number of acquisitions where we believe value enhancement can be derived from activemanagement."
Capital & Counties controls property investments approaching stlg1.0 billion. This includes significant holdings in Central London, particularlythe West End, Mid Town and the South Bank. The company also owns officesaround the M25 as well as major retail interests both in Central London and a number of UK cities.
As well as its UK interests, Capital & Counties has a US property company based in San Francisco with assets in Northern and Southern California.
Liberty International owns 100% of Capital & Counties together with Capital Shopping Centres PLC, the leading UK regional shopping centre business.
The group's property assets amounted to over stlg 5.0 billion and shareholders' funds amounted to stlg 2.9 billion at 31 December 2003.
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Publisher: Business Day
Source: Business Day
