Business
Derwent London acquisition of 22 Kingsway WC2
Derwent London acquisition of 22 Kingsway WC2.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 0246X Derwent London PLC 07 January 2014 \n \n\n7 January 2014\n \n \nDerwent London announces the acquisition of \n22 Kingsway WC2 for £59m\n \n \nIn December 2013 Derwent London plc (\"Derwent London\") completed the acquisition of 22 Kingsway WC2 in London's Midtown from Harel Insurance & Finance Group and Clal Insurance Group for £59.3m after costs.\n \nThe block comprises an eight-storey freehold office building with a net internal area of 91,400 sq ft (8,490m2). It is let to King's College London under a lease expiring in September 2025. The passing rent of £3.0m per annum, equating to an average rent of £32.80 per sq ft (£353 per m2), offers good reversionary prospects. The next rent review is in September 2015 and there is a tenant's break option in April 2021.\n \nIn addition the consideration includes the freehold interest of the Peacock Theatre on Portugal Street WC2. The theatre has a gross internal area of 44,000 sq ft (4,090m2) and is let to the London School of Economics on a lease expiring 2054 at £1 per annum.\n \nExcluding the theatre, this transaction reflects a capital value of £647 per sq ft (£6,964 per m2) and a purchaser's net initial yield of 5.1%. \n \nJohn Burns, Chief Executive Officer at Derwent London, commented:\n \n\"The off-market purchase of this prominent block provides an attractive initial yield, with good prospects for growth on review next year. With the continued improvement of Covent Garden and the wider Midtown area, 22 Kingsway offers regeneration opportunities in the longer term.\"\n \n-ends-\n \n \nFor further information please contact:\n \nDerwent London 020 7659 3000\n \nJohn Burns, Chief Executive Officer\n\nDavid Silverman, Director, Investments\n \nLouise Rich, Head of Investor Relations \n \n \nBrunswick Group\n \nSimon Sporborg 020 7404 5959\n \n ...