Christian Candy’s CPC Group is looking to raise capital for its development pipeline by selling its interest in the long-leasehold of One Hyde Park, SW1.
CPC Group is in advanced talks with Kensington-based investor Meadow Partners, which is looking to bolster its central London portfolio with the addition of the 999-year long lease of the super-luxury Knightsbridge residence.
The long leasehold effectively entitles the owner to the ground rent paid by the residents. It is valued at around £15m.
If a deal is agreed, CPC Group would still retain its interest in the freehold of One Hyde Park, which is owned by Project Grande – a joint venture between CPC and Waterknights, the property development company owned by Qatar’s former prime minister Sheikh Hamad bin Jassim bin Jaber Al Thani.
The individual flats are owned by residents on leases of around 250 years, and each pays a service charge and ground rent to the long leaseholder. The long leaseholder passes on all of the service charge to the management and freeholder, Project Grande.
Ground rents on the 86 flats were quoted at £2,000 per annum, meaning that the investment would provide a yield of 1.1%. However, it is understood that some residents have negotiated reduced ground rents in exchange for higher up-front purchase costs. As a result the income from the ground rents and the yield reflected by the price being paid for the long leasehold would both be lower.
The sale follows Candy’s £100m purchase of Marcus Cooper’s 50,000 sq ft Regency Terrace, Regents Park.
The property has planning permission to be converted into a luxury 10-bedroom mansion.
