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The headline price is £170m before rental top-ups of £2.4m for incentives and vacant space. The office and retail complex was acquired in 2000 for £29m, and in 2006 the Group completed a significant refurbishment designed by architects AHMM which increased the lettable area by 53%.

The total rent passing from the multi-let buildings is £7.3m pa with approximately 40% of the income expiring in 2021.

The sale price represents a net initial yield of 4.1% on the passing rent, which will fall to 2.5% allowing for 2021 lease expiries. The disposal price, net of incentives, is 4% below the June 2020 book value before costs. This crystallises an IRR of 10% pa to the Group since acquisition.

Paul Williams, Chief Executive of Derwent London, said:

“The refurbishment of the Johnson Building was one of our first generation of schemes and the sale continues our strategy of disposing of mature assets. The proceeds will be reinvested into new developments with superior growth prospects, such as 19-35 Baker Street W1 which is scheduled to start on site in 2021.”