Rugby and ING Extend Covent Garden Portfolio

LONDON- The ING Covent Garden Limited Partnership, managed by Rugby Estates, has bought the Strand Island portfolio in Covent Garden, London WC2 from Merrill Lynch Property Fund for £66 million ($105 million). The purchase doubles the partnership’s holdings in the Covent Garden district to over £125 million ($200 million).

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 Agar Street. major tenants include Dixons, Whitbread, Curzons Leisure and GE Capital Bank. The properties are currently 99% let and produce rental income of £4.5 million ($7.2 million) per annum with an average unexpired lease length of ten years.

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