Derwent London announces the sale of 28 Dorset Square
16 Mar 2009
Derwent London has exchanged contracts on the sale of its freehold interest in 28 Dorset Square, London NW1 to a private UK investor for £17 million.
The sale price reflects a net initial yield of 6.1% and represents a 5% premium over the 31 December 2008 valuation. Located next to Marylebone station, the four-storey office building totals 23,530 sq ft and comprises 26, 27 and 28 Dorset Square and 2, 4 and 6 Boston Place. The property underwent comprehensive refurbishment in 2006 and was subsequently let to Bacardi Global Brands Limited on a 15-year lease, expiring in 2021, at a rent of £1.1 million per annum. The rent is subject to an upward only rent review in 2011 and five-yearly thereafter.
The 2006 redevelopment of the property was undertaken by architects John McAslan + Partners and won a Royal Institute of British Architects (RIBA) Design Award in 2007.
John Burns, Chief Executive of Derwent London, comments: “This transaction represents the continuation of our selective disposals programme of mature assets in order to recycle capital within the portfolio. We are pleased to have secured this sale at a 5% premium to the December year-end valuation.”