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Derwent London PLC - London-based property investor and developer - Sells 70,300 square feet freehold interest in the Turnmill building in the Clerkenwell area of central London for £77.4 million before costs to investment manager Titan Investors. Says the redevelopment was completed in 2015 and is let to Publicis Groupe SA at a passing rent of £4.0 million per year. The lease expires in 2035 with a tenant break in 2033. The disposal price reflects a net initial yield to Titan Investors of 4.9%. This is with a rent review in 2025, a capital value of £1,100 per square foot and is ‘at a small premium’ to the December 2023 book value. Derwent London Chief Executive Officer Paul Williams comments: ‘This disposal crystallises an attractive 9.1% [internal rate of return] for the group as the London office investment market reopens. Proceeds will be recycled into our two exciting on-site net-zero carbon West End developments, 25 Baker Street W1 and Network W1, which together total 437,000 square feet, while enhancing our financial capacity as opportunities are beginning to emerge.’ Current stock price: 2,018.00 pence, down 0.6% 12-month change: down 16% Copyright 2024 Alliance News Ltd. All Rights Reserved.
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