Derwent London offloads 19 Charterhouse Street asset for £54m
Real estate investment trust Derwent London has agreed to sell its 63,170 square foot freehold interest in 19 Charterhouse Street in East London for £54.0m before costs.
Real Estate Investment Trusts
Derwent London said on Monday that the building, which was purchased in November 2013 for £41.3m after costs, was currently occupied by the London College of Accountancy on a lease expiring in August 2025.
The FTSE 250-listed group stated the disposal price represented a 4.6% net initial yield to the purchaser, had a capital value of £855 per square foot, and reflected "a marginal discount" to the site's June 2022 book value.
Chief executive Paul Williams said: "This sale forms part of our ongoing strategy of reducing our exposure to smaller buildings with less repositioning potential.
"As the flight to quality continues and occupiers become increasingly selective, proceeds will be recycled into our exciting development pipeline where we are currently on site with 435,000 square feet of net zero carbon projects which we expect will deliver attractive returns."
As of 0820 GMT, Derwent shares were untraded at 2,596.0p.
Reporting by Iain Gilbert at Sharecast.com