Merivale Moore plc - Mixed-Use Sale - London WC2, 15-19 Kingsway, Imperial House

Date: 01 Jul 2002

Merivale Moore plc, the property investment company specialising in Central London offices and South East industrial property, has completed the purchase of Imperial House, 15-19 Kingsway, London WC2 for £16.75 million.

The acquisition has been financed from existing bank facilities.

The property, centrally situated and just to the north of Aldwych, is an attractive multi-let office and retail building constructed during the early 20th century and comprehensively refurbished in the mid 1990s. Well specified, it comprises 4,616 sq m (49,700 sq ft) of bright, air-conditioned space.

The freehold interest has been acquired. The present rents aggregate £1,058,678 per annum derived from 16 tenants. This compares with a current reversionary rental value of £1,650,000 per annum. Merivale Moore expects the income to rise swiftly following the settlement of outstanding rent reviews and the letting of 763 sq m (8,200 sq ft) of vacant accommodation.

The price represents a net initial yield of 6.0%, which Merivale Moore expects to rise to 8.5% within 12 months.

CB Hillier Parker acted for Merivale Moore and the Vendor was represented by DTZ Debenham Tie Leung.

Additionally, Merivale Moore announces that contracts have been exchanged to sell Oxford and Cambridge Houses, 180-182 Upper Richmond Road, Putney, London SW15 to a property investment fund for a cash consideration of £3.95 million.

The freehold property totalling 1,346 sq m (14,500 sq ft) was recently refurbished and relet by Merivale Moore at a total rent of £333,200 per annum. It was purchased in November 1998 for £2.225 million, at which time the property produced a total income of £196,055 per annum. Merivale Moore was represented by DTZ Debenham Tie Leung.

Mike Probert, Merivale Moore's Chief Executive, stated 'With the supply of available property investments at a low ebb, we are delighted to have secured the acquisition of Imperial House off-market. The property has scope for both income and capital improvement in the short term and its multi-let character facilitates a rolling programme of renovation and higher rents. The sale at Putney is indicative of our strategy to improve our investments and to crystallise the gain when we feel that value has been optimised.'

Related website: Merivale Moore plc

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