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.’
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