(Alliance News) - Derwent London PLC on Monday said it sold the freehold on 19 Charterhouse Street EC1 in the City of London for GBP54.0 million before costs.
The London-based real estate investment trust said the purchaser of the building is a family advised by Morgan Capital and BNF Capital Ltd.
Derwent London said it had bought the 63,170 square foot building in 2013 for GBP41.3 million after costs. It is currently let to the London College of Accountancy, on a lease that expires in 2025, with a rent of GBP2.6 million per year.
The disposal price of the building represents a 4.6% net initial yield to the buyer, and a marginal discount on the June 2022 book value of the property.
Chief Executive Officer Paul Williams said: "This sale forms part of our ongoing strategy of reducing our exposure to smaller buildings with less repositioning potential.
"As the flight to quality continues and occupiers become increasingly selective, proceeds will be recycled into our exciting development pipeline where we are currently on site with 435,000 square feet of net zero carbon projects which we expect will deliver attractive returns."
Derwent London shares were up 0.8% trading at 2,615.39 pence per share on Monday morning in London.
By Harvey Dorset, Alliance News reporter
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Derwent London (DLN)