Business
DISPOSAL OF 40 CHANCERY LANE WC2
DISPOSAL OF 40 CHANCERY LANE WC2.
About this update from Derwent London Plc
[{"type":"text","content":"\n \nRNS Number : 7289X Derwent London PLC 23 December 2019 \n\nDerwent London plc (\"Derwent London\" / \"the Group\")DISPOSAL OF 40 CHANCERY LANE WC2\nDerwent London is pleased to announce it has exchanged contracts to sell its long leasehold interest in 40 Chancery Lane WC2 to Deka Immobilien for a headline price of £121.3m. The 103,700 sq ft office and retail building is let to Publicis Groupe until July 2035, with a tenant break in July 2033, at a net income of £5.5m per annum. The sale price represents a net yield to the purchaser of 4.25%. The disposal price net of rental top-ups and costs is 3.8% above June 2019 book value.\n \n40 Chancery Lane, designed by Bennetts Associates, provides eight floors of high quality offices, a retail unit of 4,400 sq ft and a new public courtyard that brings additional daylight into the office floors. The development was completed in 2015.\n \nPaul Williams, Chief Executive at Derwent London, said:\n\"The disposal of 40 Chancery Lane typifies Derwent London's strategy of recycling mature assets. The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects.\" \n- ends -\n \nFor further information, please contact:\n \n\n\n\nDerwent London\nTel: +44 (0)20 7659 3000\n \n\n\nPaul Williams, Chief Executive\nDavid Silverman, Director\nQuentin Freeman, Head of Investor Relations\n\n\n\n\n \nBrunswick Group\nTel: +44 (0)20 7404 5959\n \n\n\n \nNina Coad\nEmily Trapnell\n \n\n\n\n \n \n \nNotes to editors\n \nDerwent London plc\nDerwent London plc owns 84 buildings in a commercial real estate portfolio predominantly in central London valued at £5.4 billion (including joint ventures) as at 30 June 2019, making it the largest London-focused real estate investment trust (REIT).\n \nOur experienced team has a long track record of creating value throughout the property cycle by regenerating our buildings via development or refurbishment, effective asset management and capital recycling.\n \nWe typically acquire central London properties off-market with low capital values and modest ren...