(Alliance News) - Derwent London PLC on Thursday said it has acquired an 11-storey building in the Brixton neighbourhood of south London for GBP38.1 million.
The London-focused real estate investment trust has exchanged contracts to acquire the freehold interest in Blue Star House at 234-244 Stockwell Road.
The 53,750 square feet building comprises multi-let office space, including two vacant floors, with restaurant and leisure accommodation at ground level. The rental income from the building is GBP800,000, equating to a low average rent of GBP14.50 per square feet on the occupied office space, Derwent said. The acquisition price equates to a capital value of GBP710 per square feet.
"Vacant possession can be achieved in the next few years, and there is scope to redevelop the site with a significantly larger scheme," Derwent London said.
Shares in the FTSE 250-listed company were trading 0.3% higher at 4,134.00 pence each on Thursday morning.
By Tapan Panchal; tapanpanchal@alliancenews.com
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Derwent London (DLN)