6th Sep 2005 07:30
Derwent Valley Holdings PLC06 September 2005 DERWENT VALLEY HOLDINGS PLCPaddington office development funding and a West End freehold acquisition. Derwent Valley London Limited ("DVL"), a subsidiary of Derwent Valley HoldingsPlc, the specialist Central London property investment and development group,has entered into a conditional funding agreement with Prudential for the 105,000sq ft (9,750 m2) redevelopment of Eastbourne Terrace, Paddington, W2. This willreplace Telstar House, the 89,400 sq ft (8,305 m2) building severely damaged byfire in 2003. Under the agreement contracts have been exchanged whereby Prudential willacquire the freehold site from DVL for £15.53 million and provide thedevelopment funding. Demolition of the existing building has commenced andcompletion of the scheme is scheduled for autumn 2007. DVL will manage thedevelopment process and has the potential to participate in any developmentprofits realised upon letting of the scheme. At the same time, Derwent Valley Central Limited ("DVC"), also a subsidiary ofDerwent Valley Holdings Plc, has exchanged conditional contracts with Prudentialto acquire the freehold of 25 Savile Row, Mayfair, W1, for £5 million. DVC holda 48-year interest in the 41,715 sq ft (3,875 m2) office building, at a fixedground rent of £4,000 per annum. John Burns, Managing Director of Derwent Valley Holdings Plc, commented: "With a substantial pipeline of schemes in the portfolio this is an opportunityfor us to spread our risk, while retaining the development role in thisimportant project. The Savile Row acquisition will allow both parties torelease substantial marriage value". Russell Bradman Director: Investment of Prudential commented: "We look forward to working with Derwent Valley Holdings on this excitingproject, which will be the next new building in Paddington, a location which isproving itself to be a significant part of the West End office market". 6th September 2005 ENQUIRIES:Derwent Valley Holdings Plc 020 7659 3000John Burns, Managing Director Prudential 020 7548 6622Russel Bradman, Director: Investment This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Derwent London