11th Feb 2015 08:11
LONDON (Alliance News) - Derwent London PLC on Wednesday said it has struck a property swap deal with LaSalle Investment Management under which it will buy the leasehold on a property in Farringdon and will dispose of stakes in three other properties.
Under the deal, Derwent will acquire a 175-year leasehold on 20 Farringdon Road in London's Tech Belt area. The passing rent is GBP3.6 million per annum or GBP3.2 million per annum net of the 10% ground rent.
In return, Derwent will hand the 22 Kingsway property in central London and the Mark Square House property, in the City of London, to LaSalle.
It will also enter into a joint venture with LaSalle at the 9 and 16 Prescot Street properties in East London. The properties have been sold to the joint venture for GBP37.4 million, Derwent said, which represents a net initial yield of 4.9%
"We are pleased to have secured a major potential project adjacent to the site of Farringdon Crossrail station in the heart of Clerkenwell, an area where we already have substantial interests. In return we have sold two smaller properties, and have established a joint venture in Whitechapel," said Derwent Chief Executive Officer John Burns.
Derwent shares were up 0.1% to 3,304.00 pence on Wednesday morning.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Derwent London