DUBLIN-BASED BCP Asset Management has added an estimated €2 million in value to a mixed office and retail complex at 270-280 King’s Road in London after a successful run of rent reviews and tenant changes. The company says the newly agreed retail rent is the highest along this stretch of King’s Road.

BCP originally bought the complex in October, 2004, for the BCP London Commercial Property Fund 2, at a cost of €28.67 million. At that stage the retail rent roll was €373,000. The first rent review in December, 2006 – just as the property market was peaking – triggered an increase to €433,000. Next December’s five-year review of the ground floor retail area has already been agreed and will see the rent rise to €478,000, representing a 28 per cent increase since the building was first acquired.

BCP has also negotiated a successful tenant switch in the upper floor office areas, replacing a local firm of architects who had been paying £256,800 per annum with HCA International, one of the worlds largest private medical care operators with a turnover of €23 billion. Under a new 13- year lease to HCA, the rent has risen to €448733, representing a 73 per cent increase from the date of purchase. HCA has also rented an additional floor of offices to bring its rent roll up to £615,400 per annum.

BCP Asset Management says its running cash yield on the complex is now 7.3 per cent. A recent valuation by DTZ reflected a gain of 65 per cent since the investment was acquired seven years ago.