22nd Jul 2014 14:25
LONDON (Alliance News) - Derwent London PLC Tuesday said it has disposed of its freehold properties located near London's Old Street and in Kentish Town for a combined fee of GBP37.4 million.
Derwent said the 186 City Road office building, north of the Old Street roundabout, was sold for GBP23.3 million to an unnamed private buyer.
The offices are fully let to a variety of tenants on leases expiring between August, 2014 and March 2021 for a total rent of GBP1.0 million a year, said the company. The net initial yield to the purchaser is 4.09% and reflects a net premium of 54.1% to the December 2013 valuation, the company said.
Derwent said the Kentish Town property is also fully let. It said 35 Kentish Town Road is fully let to Viacom Inc, on leases expiring in 2028 for GBP410,000 a year in rent, while 37 Kentish Town Road is fully let for GBP150,000 a year rent until 2019, with rolling breaks from June 2015. This disposal reflects a net initial yield to the purchaser of 3.79% and a 41.5% net premium to the December 2013 valuation.
The Kentish Town property was sold for GBP14.1 million to an unnamed institutional purchaser said the company.
Derwent shares were quoted up 1.9% at 2,760.00 pence Tuesday afternoon.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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