13th Jul 2015 08:14
LONDON (Alliance News) - FTSE 250-listed property developer Derwent London PLC on Monday said it has struck a GBP132 million deal to acquire the Aldgate Union building in Whitechapel in east London and said it has secured its first lettings at the White Collar Factory in Old Street, also in east London.
Derwent will acquire the Aldgate Union building, located on Whitechapel High Street, from Royal Bank of Scotland Group PLC. It will be bought with vacant possession in December. RBS is currently the occupier of the property.
The property is located on a one acre site and includes an eight-storey building with a total of 255,000 square feet in total office space.
"We are delighted to have acquired a prominent property in this fast improving Whitechapel location which increases our Tech Belt holdings to 2.4 million square foot. Although soon to be vacant the building is in good condition, and we expect to quickly re-let it on a multi-occupier basis after modest refurbishment," said John Burns, Derwent's chief executive.
The Office Group, a provider of flexible offices and co-working spaces, will take five floors in the White Collar building, paying a combined rent of GBP4 million a year on a 20-year lease. It has also let a further five floors of the tower to AKT II, the structural engineering company, which has also agreed a 20-year lease and will pay GBP2.4 million a year.
"We have made an excellent start with the letting of almost 25% of the White Collar Factory to two occupiers who share our vision for this exciting multi-tenanted urban campus. The initial rent is above our expectations and sets the tone, which we expect to improve as we let the upper floors of the building," said Burns added.
Shares in Derwent were up 1.7% to 3,599.00 pence on Monday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
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