Derwent London sells London office scheme for £130 mln to Secretary of State for Transport
Derwent London has entered an agreement to sell the freehold interest in for £130m before costs. The purchaser was the Secretary of State for Transport.
The property provides 219,700 sq ft and is let to University College London for £1.7m pa. The property was acquired in 2007, and planning for the development of 233,000 sq ft of offices and 38 residential units was achieved in 2010. The offices were designed as Derwent London’s first White Collar Factory development, the same concept that is now being successfully delivered at Old Street Yard EC1, and had attracted considerable pre-letting interest. However, these plans were unable to be carried forward due to the decision to build HS2 announced in 2012. The December 2016 book value, which did not reflect the full benefit of the very valuable planning consent, was £115m.
John Burns, Chief Executive Officer of Derwent London, commented:
“We are pleased to have concluded the sale of this well located property to HS2. The transaction will provide greater certainty both for Derwent London and for the future of the site.”
Source: Derwent London