Derwent London announces that it has exchanged contracts to sell its 70,300 sq ft freehold interest in Turnmill EC1 for £77.35m (before costs). The purchaser is the UK investment manager Titan Investors.
The redevelopment of this architecturally striking building in the heart of Clerkenwell completed in 2015 and it is let to Publicis Groupe, at a passing rent of £4.0m, on a lease expiring in 2035, with a tenant break in 2033. The disposal price reflects a net initial yield to the purchaser of 4.9% with a rent review in 2025, a capital value of £1,100 psf and is at a small premium to the December 2023 book value.
Paul Williams, Chief Executive of Derwent London, said:
“This disposal crystallises an attractive 9.1% IRR for the Group as the London office investment market reopens. Proceeds will be recycled into our two exciting on-site net zero carbon West End developments, 25 Baker Street W1 and Network W1, which together total 437,000 sq ft, while enhancing our financial capacity as opportunities are beginning to emerge.”