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LONDON-Liberty International has acquired the landmark Covent Garden market and piazza for euro 625.39-million ($802.21-million). The 450,000-sf market covers seven acres in London's West End. The seller was Covent Garden Market Limited Partnership fund whose shareholders were pension fund Scottish Widows and Henderson Global Investors. The fund was set up in July 2000 to buy the market and then expanded in April 2002.

The market comprises 31 separate properties and currently generates rents of euro 25.54 ($32.78 million). Once current voids are let the sale will generate a 4.5% yield.

Liberty's subsidiary, Capital & Counties (CapCo), which bought the title deeds, already has a retail, office and residential portfolio on Long Acre and Floral street currently valued at euro 74.25 million ($95.25 million). CapCo already has access to considerable expertise in managing retail property in another Liberty subsidiary, Capital Shopping Centres, which owns some of Britain's biggest shopping centres.

"Capital & Counties Central London expertise will be enhanced by the retail capabilities and extensive knowledge and retailer relationships of Capital Shopping Centres," says CapCo managing director John Saggers. "As long-term investors, we look forward to working with the Covent Garden Area Trust and other local stakeholders in finding ways to evolve and upgrade the quality, offer and value of the Market and Piazza as well as the surrounding streets."

CapCo had been in talks with GE Capital to make a joint purchase of Covent Garden market but talks ended during the final weeks of bidding and CapCo decided to go ahead.

Instant Insights /

Liberty Purchases Covent Garden for $802M

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