Benchmark makes capital gains

By MALCOLM WITHERS
Updated:

 

Leaseholds held by central London property developer Benchmark Group in Sloane Street have been sold back to their freeholders, the old-established Cadogan Estate.

Benchmark is selling its long leasehold interests in Liscarten House and Granville House, both in Sloane Street where their mixture of office, retail and flat accommodation currently brings in £1m and £978,000 a year respectively.

Benchmark has also sold freehold office interests in Soho Square and Greek Street, where current total rental is £1.3m, to a private investor. The three properties have realised a total of £57.69m representing a net profit of £1.91m or 3.5% over book value and a surplus of £21.2m or a healthy 59.5% on historic cost.

Benchmark chief executive Nigel Kempner said that the property market is 'still conducive to achieve sales which generate good returns on historic cost and convert unrealised valuation surpluses into realised profits'.

He believes the central London market is strong and that there is a shortage of good modern space leading to rental growth. He still plans to take his own advice and purchase properties 'when there are opportunities'.

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