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Derwent London announces that it has exchanged contracts to sell its 70,700 sq ft freehold interest in New River Yard EC1 to a UK private property company. The disposal price is £67.5m before costs, and before rental top-ups.

New River Yard consists of four office buildings at 3-4 and 5-8 Hardwick Street and 151 and 161 Rosebery Avenue. The space is multi-let to 13 tenants with a total passing rent of £3.3m per annum with an average of 2.6 years to lease break/expiry. The disposal price, after deduction of rental top-ups, represents a 4.5% net initial yield and a marginal discount to June 2021 book value.

Paul Williams, Chief Executive of Derwent London, said:

“This sale continues our strategy of recycling mature assets while investing in developments and potential pipeline projects where we see superior returns. We currently have 708,000 sq ft of net zero carbon development under construction including the recently commenced 19-35 Baker Street W1.”