23rd Dec 2019 08:30
(Alliance News) - Derwent London PLC said Monday it has agreed to sell its office and retail building at 40 Chancery Lane in central London to Deka Immobilien GmbH for GBP121.3 million.
The property company said the sale price represents a net yield to the purchaser of 4.25%. The disposal price net of rental top-ups and costs is 3.8% above June book value.
Derwent London said 40 Chancery Lance building is let to French advertising firm Publicis Groupe SA until July 2035, with a tenant break in July 2033, at a net income of GBP5.5 million per annum.
Chief Executive Officer Paul Williams, said: "The disposal of 40 Chancery Lane typifies Derwent London's strategy of recycling mature assets."
"The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects," Williams said.
Derwent London shares were up 1.0% in London at 3,886.00 pence each on Monday.
By Loreta Juodagalvyte; [email protected]
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