29th Jul 2025 11:10
Derwent London PLC - London-based property investor and developer - Exchanges contracts for the sale of Francis House for GBP55.5 million, to a Local Government Pension Scheme advised by Colliers Global Investors. Expects the sale to complete early in the fourth quarter. Francis House consists of 43,000 square feet of office space and a 9,000 square foot basement. Derwent says PR company Edelman pre-let the space, during renovations completed in 2022, on a 15-year lease at a GBP76 per square foot headline rent. Adds that the sale price is in line with the December 2024 book value and reflects a 4.9% net initial yield to the buyer. Expects the sale to be "slightly accretive" to EPRA earnings.
"We are seeing improved investment liquidity across the London office market and today's disposal highlights strengthening investor demand. With GBP215m of sales completed or contracted to complete in 2025, we will reinvest the proceeds into a range of higher returning opportunities, including our three near-term West End projects totalling 0.5 million square feet and potential acquisitions."
Current stock price: 1,935.00 pence
12-month change: down 14%
By Emma Curzon, Alliance News reporter
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