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Derwent London is pleased to announce that it has exchanged contracts for the disposal of Francis House, 11 Francis Street SW1 (comprising 43,000 sq ft of office space plus a 9,000 sq ft basement) for a consideration of £55.5m (before transaction costs), less a £1.3m surrender premium in relation to the basement space. The purchaser is a Local Government Pension Scheme advised by Colliers Global Investors and the sale is scheduled to complete in early Q4 2025.

During the comprehensive refurbishment of this former Army & Navy store, that completed in 2022, global PR firm Edelman pre-let the space on a 15-year lease (with a break at year 10) at a headline rent of £76 psf. The sale price, which is in line with the December 2024 book value, reflects a 4.9% net initial yield to the purchaser. On an earnings basis, the yield is 4.1% after adjusting for incentives, with the disposal expected to be slightly accretive to EPRA earnings on a proforma basis.

Paul Williams, Chief Executive of Derwent London, said:

“We are seeing improved investment liquidity across the London office market and today’s disposal highlights strengthening investor demand. With £215m of sales completed or contracted to complete in 2025, we will reinvest the proceeds into a range of higher returning opportunities, including our three near-term West End projects totalling 0.5m sq ft and potential acquisitions.”