The Strand Island investment comprises 105,000 sf of office,retail and leisure space, with a prominent frontage to the Strand.The block is bordered by Bedford Street, Chandos Place and AgarStreet. major tenants include Dixons, Whitbread, Curzons Leisureand GE Capital Bank. The properties are currently 99% let andproduce rental income of £4.5 million ($7.2 million) per annum withan average unexpired lease length of ten years.

The purchase has been financed through the issue of £26.8million ($43 million) of additional capital, and debt finance fromthe Royal Bank of Scotland.

Rugby Estates Chairman David Tye said the deal was the largestinvestment transaction in Covent Garden in the last 12 months. "TheStrand Island site purchase represents a major step towards ourobjective of growing the portfolio of the partnership to £250million ($400 million) of assets within the next few years."