Derwent London sells 9 Prescot Street E1
20 Feb 2019
Derwent London and LaSalle Investment Management (“LaSalle”), in a 50:50 joint venture, are pleased to announce the exchange of contracts on the freehold sale of 9 Prescot Street E1 (“the property”) for £53.85m before costs, to CLS Holdings plc. The disposal is in excess of December 2018 book value.
The property was originally acquired by the Group in 2012 for £23.2m. The purchase price included a small adjoining property, 16 Prescot Street E1. A 50% share of both assets was sold by the Group into a joint venture with LaSalle for £37.4m in February 2015.
9 Prescot Street is a 97,000 sq ft office building in Whitechapel. Barts Health NHS Trust occupies the five lower floors comprising 59,600 sq ft on a lease expiring January 2020. The disposal follows a recent £5.3m refurbishment and re-letting of the upper three floors totalling 37,400 sq ft.
The joint venture retains 16 Prescot Street.
David Silverman, Investment Director at Derwent London, said:
"9 Prescot Street has produced strong returns since acquisition and the disposal enables us to recycle capital into our larger on-site developments. Through the establishment of our successful joint venture with LaSalle in 2015, we acquired a long leasehold interest in 20 Farringdon Road EC1, a major holding adjacent to the Farringdon Elizabeth line station.”
Julian Agnew, CIO at LaSalle Investment Management, said:
"We are pleased with the success of 9 Prescot Street which has delivered strong returns for our client as a result of a successful collaboration with our joint venture partner, Derwent London.”