Developer Is Exiting Smaller London Buildings With Fewer Repositioning Opportunities
Derwent London, the listed London focused developer and investor, has exchanged to sell its 63,170-square-foot freehold interest in 19 Charterhouse Street EC1 in London for £54 million.
The purchaser was a family office advised by Morgan Capital and BNF Capital.
The building, which was bought in November 2013 for £41.3 million, is occupied by the London College of Accountancy on a lease expiring in August 2025.
The passing rent is £2.6 million a year. The disposal price represents a 4.6% net initial yield to the purchaser, a capital value of £855 per square foot and reflects a marginal discount to June 2022 book value.
The sale is one of a handful to have exchanged in the capital in 2023 as the market looks for momentum after a slowdown towards the end of last year.
Paul Williams, chief executive of Derwent London, said the sale forms part of an ongoing strategy of reducing exposure to smaller buildings with less repositioning potential.
“As the flight to quality continues and occupiers become increasingly selective, proceeds will be recycled into our exciting development pipeline where we are currently on site with 435,000 square feet of net zero carbon projects which we expect will deliver attractive returns.”