TIDMDLN
RNS Number : 8434J
Derwent London PLC
03 July 2017
3 July 2017
Derwent London plc ("Derwent London" / "the Group")
Derwent London sells The Copyright Building for GBP165m
Derwent London is pleased to announce that it has exchanged
contracts on the sale of its long leasehold interest in The
Copyright Building, 30 Berners Street W1 to Union Investment Real
Estate GmbH ("Union Investment"). The consideration is GBP165.0m,
or GBP148.7m net of top-ups relating to rent free periods and a
rent guarantee on the vacant retail space. The building, which is
under construction, will comprise 87,150 sq ft offices let to
Capita Business Services Limited for GBP7.4m per annum and three
retail units totalling 20,000 sq ft which are currently vacant. The
estimated rental value of the three retail units is GBP960,000.
There is a ground rent payable equivalent to 12.5% of gross rents.
Completion of the sale is expected in Q4 2017 after the building
has been completed.
The Group acquired a 68-year leasehold interest in 25-27 and
29-33 Berners Street W1 in late 2012 for GBP36.5m. It subsequently
regeared its headlease with the freeholder, The Berners-Allsop
Estate, incorporating a third property, extending the lease to 127
years and enabling the property's redevelopment. The disposal price
represents a 4.2% initial yield to the purchaser and a significant
premium to book value, thereby crystallising the development
profit.
John Burns, Chief Executive Officer of Derwent London, said:
"The disposal of The Copyright Building to this established
international investor endorses the strength of the central London
office investment market. Derwent London has over a third of its
portfolio in Fitzrovia including its major 80 Charlotte Street
development where we recently pre-let 42% of the office space. This
transaction takes net sale proceeds to GBP670m over the past twelve
months and, on average, 8% above the previous December book
values."
Martin Schellein, Head of Investment Management Europe of Union
Investment, said:
"Fitzrovia is currently one of the most dynamic areas of
London's West End. Once completed, The Copyright Building will be
one of the district's highest-value office complexes and is let on
a long-term basis to an office tenant with an excellent credit
rating. As a result, this core investment is in line with the
defensive strategy for expanding our portfolio in the UK and
demonstrates that we are still pursuing attractive investment
opportunities in the current market cycle."
- ends -
Enquiries:
Derwent London John Burns, Chief Executive
Tel +44 (0)20 7659 Officer
3000 David Silverman, Director
Quentin Freeman, Head of
Investor Relations
Brunswick Group LLP Tim Danaher
Tel: +44 (0)20 7404 Emily Trapnell
5959
Notes to editors
Union Investment
Union Investment stands for forward-looking real estate
investment worldwide. We provide private and institutional property
investors with a comprehensive investment platform. Union
Investment currently has assets under management totalling around
EUR 31.8 billion in its open-ended retail real estate funds and
specialised funds excluding service and pooling mandates. We invest
in the office, retail, hotel and logistics sectors and hold more
than 350 properties across 23 countries in our actively managed
portfolio.
Derwent London plc
Derwent London plc owns a portfolio of commercial real estate
predominantly in central London valued at GBP5.0 billion (including
joint ventures) as at 31 December 2016, making it the largest
London-focused real estate investment trust (REIT).
Our experienced team has a long track record of creating value
throughout the property cycle by regenerating our buildings via
development or refurbishment, effective asset management and
capital recycling.
We typically acquire central London properties off-market with
low capital values and modest rents in improving locations, most of
which are either in the West End or the Tech Belt. We capitalise on
the unique qualities of each of our properties - taking a fresh
approach to the regeneration of every building with a focus on
anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business
has a strong balance sheet with modest leverage, a robust income
stream and flexible financing.
Landmark schemes in our 6.0 million sq ft portfolio include
Angel Building EC1, The Buckley Building EC1, White Collar Factory
EC1, 1-2 Stephen Street W1, Horseferry House SW1 and Tea Building
E1.
In 2017 the Group won the Property Week Developer of the Year
award and was listed 12th out of 4,000 in the Corporate Knights
Global 100 of the world's most sustainable companies. In 2016 the
Group won Estates Gazette National Company of the Year and London
awards as well as awards from Architects' Journal, British Council
for Offices, Civic Trust and RIBA and achieved EPRA Gold for
corporate and sustainability reporting.
As part of its wider sustainability programme, in 2013 Derwent
London launched a dedicated GBP250,000 voluntary Community Fund
and, in 2016, made a further commitment of GBP300,000 for the next
three years for Fitzrovia and the Tech Belt.
The Company is a public limited company, which is listed on the
London Stock Exchange and incorporated and domiciled in the UK. The
address of its registered office is 25 Savile Row, London, W1S
2ER.
For further information see www.derwentlondon.com or follow us
on Twitter at @derwentlondon
Forward-looking statements
This document contains certain forward-looking statements about
the future outlook of Derwent London. By their nature, any
statements about future outlook involve risk and uncertainty
because they relate to events and depend on circumstances that may
or may not occur in the future. Actual results, performance or
outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking
statements.
No representation or warranty is given in relation to any
forward-looking statements made by Derwent London, including as to
their completeness or accuracy. Derwent London does not undertake
to update any forward-looking statements whether as a result of new
information, future events or otherwise. Nothing in this
announcement should be construed as a profit forecast.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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