REG - Derwent London PLC - Disposal of Francis House SW1 for £55.5m

Derwent LondonAnnouncement

Tue 07:00

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RNS Number : 8589S  Derwent London PLC  29 July 2025

 Derwent London plc ("Derwent London" / "the Group")

 Disposal of Francis House SW1 for £55.5m

Derwent London is pleased to announce that it has exchanged contracts for the
disposal of Francis House, 11 Francis Street SW1 (comprising 43,000 sq ft of
office space plus a 9,000 sq ft basement) for a consideration of £55.5m
(before transaction costs), less a £1.3m surrender premium in relation to the
basement space. The purchaser is a Local Government Pension Scheme advised by
Colliers Global Investors and the sale is scheduled to complete in early Q4
2025.

During the comprehensive refurbishment of this former Army & Navy store,
that completed in 2022, global PR firm Edelman pre-let the space on a 15-year
lease (with a break at year 10) at a headline rent of £76 psf. The sale
price, which is in line with the December 2024 book value, reflects a 4.9% net
initial yield to the purchaser. On an earnings basis, the yield is 4.1% after
adjusting for incentives, with the disposal expected to be slightly accretive
to EPRA earnings on a proforma basis.

Paul Williams, Chief Executive of Derwent London, said:

"We are seeing improved investment liquidity across the London office market
and today's disposal highlights strengthening investor demand. With £215m of
sales completed or contracted to complete in 2025, we will reinvest the
proceeds into a range of higher returning opportunities, including our three
near-term West End projects totalling 0.5m sq ft and potential acquisitions."

For further information, please contact:

 Derwent London                             Paul Williams, Chief Executive

 Tel: +44 (0)20 3478 4217 (Robert Duncan)   Richard Dean, Director of Investment

                                            Robert Duncan, Head of Investor Relations
 Brunswick Group                            Nina Coad

 Tel: +44 (0)20 7404 5959                   Peter Hesse

Notes to editors

Derwent London plc

Derwent London plc owns a commercial real estate portfolio predominantly in
central London valued at £5.0 billion as at 31 December 2024, making it the
largest London office-focused real estate investment trust (REIT).

Our experienced team has a long track record of creating value throughout the
property cycle by regenerating our buildings via redevelopment or
refurbishment, effective asset management and capital recycling. We typically
acquire central London properties off-market with low capital values and
modest rents in improving locations, most of which are either in the West End
or City Borders. We capitalise on the unique qualities of each of our
properties - taking a fresh approach to the regeneration of every building
with a focus on anticipating tenant requirements and an emphasis on design.
Reflecting and supporting our long-term success, the business has a strong
balance sheet with modest leverage, a robust income stream and flexible
financing.

We are frequently recognised in industry awards for the quality, design and
innovation of our projects. Landmark buildings in our 5.4 million sq ft
portfolio include 1 Soho Place W1, 80 Charlotte Street W1, Brunel Building W2,
White Collar Factory EC1, Angel Building EC1, 1-2 Stephen Street W1 and Tea
Building E1.

As part of our commitment to lead the industry in mitigating climate change,
Derwent London has committed to becoming a net zero carbon business by 2030,
publishing its pathway to achieving this goal in July 2020. Our science-based
carbon targets validated by the Science Based Targets initiative (SBTi). In
2013 the Company launched a voluntary Community Fund which has to date
supported 180 community projects in central London.

The Company is a public limited company, which is listed on the London Stock
Exchange and incorporated and domiciled in the UK. The address of its
registered office is 25 Savile Row, London, W1S 2ER.

For further information see www.derwentlondon.com
(http://www.derwentlondon.com) or follow us on LinkedIn

Forward-looking statements

This document contains certain forward-looking statements about the future
outlook of Derwent London. By their nature, any statements about future
outlook involve risk and uncertainty because they relate to events and depend
on circumstances that may or may not occur in the future. Actual results,
performance or outcomes may differ materially from any results, performance or
outcomes expressed or implied by such forward-looking statements.

No representation or warranty is given in relation to any forward-looking
statements made by Derwent London, including as to their completeness or
accuracy. Derwent London does not undertake to update any forward-looking
statements whether as a result of new information, future events or otherwise.
Nothing in this announcement should be construed as a profit forecast.

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