- Capital & Counties Properties has acquired control of 100% of the Empress State Building having exchanged contracts with Land Securities Group for the 50% not already owned for a price of £117m.

The Empress State Building is a 451,000 sq ft, 31 storey, office building located adjacent to the Earls Court & West Kensington Opportunity Area.

It is fully let to the Mayor's Office for Policing and Crime until June 2019, with annual rental uplifts indexed to RPI with a floor of 2% and cap of 5.25%. The current rent passing is £14.9m. The purchase price represents an initial yield of 6.2% and an equivalent yield of 6%.

In the medium-term, opportunities to extend or review the existing lease will be considered or alternatively the property may be suitable for a residential conversion in line with the plans for the Earls Court Masterplan.

The price of £117m will comprise a cash payment and the assumption of Land Securities' share of the existing £131m debt facility, which will remain in place until maturity in August 2013. A new five year debt facility is currently under negotiation.

At 8:09am:

[LON:CAPC] share price was +0.35p at 331.35p

[LON:LAND] Land Securities share price was -1.75p at 944.25p

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