Last checked at 20 Jul 2009 07:00
3PRESS RELEASE
20 JULY 2009
Derwent London plc ("Derwent London" / "Company")
DERWENT LONDON ANNOUNCES WEST END SALE
13-17 FITZROY STREET, LONDON W1
Derwent London has exchanged contracts on the sale of its freehold interest at 13-17 Fitzroy Street, London W1 to a member of the Arup group of companies ("Arup") for £60 million, which reflects a net initial yield of 7%.
The sale price represents a decrease of 10% from the 31 December 2008 valuation, which compares to the IPD UK Monthly Property Index for West End & Midtown offices which showed a decline of 14.8% for the first six months of 2009.
The property is fully let to Arup on a lease expiring 2023 at a rent of £4.46 million per annum, subject to five-yearly upward only rent reviews.
Prominently located on the corner of Fitzroy and Howland Street, the eight storey office building totals 90,420 sq ft (8,400 sq m). The property underwent a comprehensive redevelopment which completed in 2003 as the first of a three phase scheme to provide Arup's new global headquarters. Following the sale of Phase I Derwent London will retain the ownership of Phases II and III, with Arup occupying the remaining 147,700 sq ft (13,720 sq m) in its entirety.
John Burns, Chief Executive of Derwent London said:
"We are pleased to have agreed this significant sale which forms part of our programme to recycle capital. Arup is an important tenant on our Fitzrovia Estate with whom we have a long standing relationship. We are committed to the strategic regeneration of the Fitzrovia area, where our ownership extends to over one million sq ft and where we look forward to continuing to work closely with Arup."
-ends-
For further information please contact:
Derwent London
John Burns, Chief Executive,
Tel - 020 7659 3000
Brunswick Group
Andrew Fenwick / James Rossiter
Tel - 020 7404 5959
Notes to editors:
Derwent London plc
Derwent London plc is the largest central London focussed REIT with an investment portfolio of £2.1 billion as at 31 December 2008. The group is one of London's most innovative office regenerators and investors, well known for its established design-led philosophy and creative approach to development. In April, Derwent London was awarded the Property Week Property Company of the Year 2009.
Derwent London's core strategy is to acquire and own a portfolio of central London property that has reversionary rents and significant opportunities to enhance and extract value through refurbishment and redevelopment. The group owns and manages an investment portfolio, of which 94% is located in central London, with a specific focus on the West End and the areas bordering the City of London.
Landmark schemes by Derwent London include: Qube W1, Horseferry House SW1, Johnson Building EC1, Davidson Building WC2 and Tea Building E1.