Derwent London plc (“Derwent London”) completed the acquisition of the long leasehold interests in 25-27 Berners Street and 29-33 Berners Street London W1 from the owner occupier, The MCPS-PRS Alliance Limited, (“PRS for Music”) for £35.0m before costs in December 2012. This reflects a capital value of £440 per sq ft.
Both buildings have eight floors. 25-27 Berners Street comprises 35,200 sq ft and 29-33 Berners Street comprises 44,300 sq ft, providing a combined total floor area of 79,500 sq ft.
The head leases expire in 2080 and together have a fixed annual ground rent of £3,125.
PRS for Music has leased back both properties for a term of three years, subject to a tenant only break option after 18 months, at a rent of £1.4m per annum, equating to £17.60 per sq ft. The buildings provide asset management opportunities upon the tenant vacating, when both buildings will be refurbished to deliver the Group’s hallmark design-led, contemporary space.
John Burns, Chief Executive Officer at Derwent London, commented:
“These acquisitions represent excellent additions to our substantial Fitzrovia and North of Oxford Street estates where our ownership extends to 1.6 million sq ft. The properties offer regeneration and redevelopment opportunities in the longer term.”