Acquisition of 20 Farringdon Road as part of property swap
11 Feb 2015
Derwent London plc has exchanged contracts with LaSalle Investment Management to acquire a minimum 175-year long leasehold of 20 Farringdon Road, Clerkenwell EC1 in London’s Tech Belt. LaSalle will retain the building’s virtual freehold with the right to receive 10% of all rents. In return Derwent London has disposed of two properties: 22 Kingsway WC2 for £64.5 million and Mark Square House EC2 for £32.1 million, representing net initial yields of 4.4% on both properties, and a 50% interest in a joint venture at 9 and 16 Prescot Street E1 to LaSalle. The price of the acquisition is £88.0m before costs, and the combined disposal proceeds are £115.3m. Derwent London will receive the balance of £27.3m in cash before costs.