9th Dec 2025 10:23
(Alliance News) - Derwent London PLC on Tuesday announced that fashion house Burberry PLC has agreed to extend the lease at Burberry's headquarters at Horseferry House in the Pimlico section of central London to 2043.
Derwent, a London office-focused real estate investment trust, said the extended lease term incorporates two new five-year fixed rate uplifts.
The extension is from 2038 to 2043 without breaks, increasing the unexpired term to 17.6 years. New fixed uplifts replace the previous 2033 rent review and 2038 expiry, which Derwent said gives it visibility on future income.
Derwent said the fixed uplifts will be recognised in its accounts, resulting in an immediate increase in IFRS earnings of GBP900,000 per year.
Derwent Chief Executive Officer Paul Williams said: "We have a strong, long-standing relationship with Burberry, one of our largest occupiers, who recently completed a comprehensive refit of Horseferry House. I am pleased that we have agreed to extend their lease to 2043, reflecting their long-term commitment to the building which serves as their global headquarters.
"Since the start of the year, we have completed re-gear and renewal activity totalling GBP19.2 million, averaging 5.1% above the previous rent."
Derwent London shares were down 0.6% at 1,606.00 pence each on Tuesday morning in London, while Burberry shares were down 1.4% to 1,187.00p each.
By Tom Budszus, Alliance News slot editor
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