Derwent London offloads Chancery Lane leasehold for £121m
Derwent London has exchanged contracts to sell its long leasehold interest in 40 Chancery Lane, WC2, to Deka Immobilien for a headline price of £121.3m, it announced on Monday.
The FTSE 250 company said the 103,700 square foot office and retail building was let to Publicis Groupe until July 2035, with a tenant break in July 2033, at a net income of £5.5m per annum.
It said the sale price represented a net yield to the purchaser of 4.25%, with the disposal price net of rental top-ups and costs being 3.8% above its June book value.
Derwent said 40 Chancery Lane, designed by Bennetts Associates, provides eight floors of “high quality” offices, a retail unit of 4,400 square feet and a new public courtyard that brought additional daylight into the office floors.
The development was completed in 2015.
“The disposal of 40 Chancery Lane typifies Derwent London's strategy of recycling mature assets,” said chief executive officer Paul Williams.
“The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects.”