Capital & Counties has exchanged contracts for the sale of its interests in Earls Court, excluding Lillie Square, to APG and Delancey for £425m.
The price is significantly short of the balance sheet value at 30 June 2019 of £508m.
Payments will be made to Capital & Counties on a phased basis, with 45% payable on completion and the balance over two years.
As a result of the deal, which is expected to complete by the end of November 2019, the company’s loan to value will fall from 19% to 15%.
Capital & Counties will reposition itself as a prime central London property investment business, with a portfolio centred around Covent Garden.
Ian Hawksworth, chief executive, said: “Having prepared Earls Court for future development, we are now pleased to have agreed terms for the sale of our interests to APG and Delancey (on behalf of its client fund), an experienced real estate investment partnership which, with the support of TfL will take forward this important scheme for London.
“Following the disposal, Capco will be a strongly-capitalised property investment business centred around our landmark Covent Garden estate. The business is well-positioned to generate attractive long-term returns for shareholders. Backed by a strong balance sheet and with a significant investment pipeline, our access to substantial liquidity will enable us to capitalise on opportunities.”
CAPC : Capital & Counties sells Earls Court estate for £425m