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Capital & Counties Properties PLC (“Capco”) has acquired the freehold interest of Tower House, 10 Southampton Street, Covent Garden, from Derwent London plc (“Derwent London”) for £67.5m before purchaser’s costs.

The property is a substantial corner building located at the junction of Southampton Street and Tavistock Street with views towards the Piazza. The multi-let building produces an annual rental income of £3.1m across 53,700 sq ft which comprises 13,800 sq ft of retail, 37,000 sq ft of offices and 2,900 sq ft of residential accommodation.

Ian Hawksworth, Chief Executive of Capco, commented:

“Covent Garden is a world class retail and dining destination and Southampton Street is an important gateway to the estate. This acquisition is in line with our strategy to expand our footprint, acquire prime assets and invest in our estate.”

John Burns, Chief Executive Officer of Derwent London, commented:

“This disposal is in line with our June 2016 valuation and, with our total sales of £140m year to date, demonstrates our continued ability to recycle capital.”

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