MEPC has taken lease extensions on two properties in the West End of London and £17.7m in cash in exchange for surrendering a number of short leasehold interests to landlord Grosvenor Estate Holdings.
The deal, worth a total of £26m, enables Grosvenor to consolidate direct control of its holdings in Oxford Street and Duke Street, both W1, while MEPC increases its exposure in West End rack rented properties.
MEPC’s extended interests are at 2,230 sq m (24,000 sq ft) Broadbent House, 64-65 Grosvenor Street, W1, where tenants include Estee Lauder; and 49-54 Audley Street and 6 Reeves Mews, W1, a 2,183 sq m (23,500 sq ft) mixed office, retail and residential scheme.
In exchange, MEPC has surrendered leases on a handful of properties including prime shops at 435-437 Oxford Street, let to Sock Shop, and at 447 Oxford Street, occupied by Mackenzie the jewellers. Among the other interests handed over are a 1,579 sq m (17,000 sq ft) multi-let office at 19-20 Grosvenor Street and a parade of shops in Duke Street. All the buildings are held on leases of between seven and 40 years.
MEPC UK director Nathan Thompson said: “This provided an excellent opportunity for us to secure significant profit from wasting assets, and at the same time, improving the value of those properties where we would have secured long leases from Grosvenor Estate Holdings.”
Nelson Bakewell advised MEPC on the deal.
EGi News 25/04/97
