REG - Derwent London PLC - Disposal <Origin Href="QuoteRef">DLN.L</Origin>

Derwent LondonAnnouncement

06/09/2014 18:46

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140722:nRSV0148Na


RNS Number : 0148N
Derwent London PLC
22 July 2014 
 
22 July 2014 
 
Derwent London plc ("Derwent London" / "the Group") 
 
Derwent London announces £37 million of disposals 
 
Derwent London has disposed of its freehold properties at 186 City Road EC1
and 35-37 Kentish Town Road NW1 for gross proceeds of £37.37m. 
 
186 City Road is a 38,300 sq ft freehold office building situated north of the
Old Street roundabout which Derwent London has sold for gross proceeds of
£23.3m to a private buyer.  The offices are fully let to a variety of tenants
on leases expiring between August 2014 and March 2021 for a total headline
rent of £1.01m pa.  The net initial yield to the purchaser is 4.09% and
reflects a net premium of 54.1% to the December 2013 valuation. 
 
35-37 Kentish Town Road comprises 24,500 sq ft of offices in Camden which have
been sold for gross proceeds of £14.07m to an institutional purchaser.  35
Kentish Town Road, which was refurbished in 2012/13, is fully let to Viacom on
leases expiring in 2028 at a headline rent of £0.41m pa.  37 Kentish Town Road
is fully let at £0.15m pa until 2019, with rolling breaks from June 2015. 
This disposal reflects a net initial yield to the purchaser of 3.79% and a
41.5% net premium to the December 2013 valuation. 
 
John Burns, Chief Executive Officer of Derwent London, commented: 
 
"The disposal of these smaller properties at a substantial premium to their
December book values is in line with our strategy of taking advantage of a
strong investment market by making opportunistic sales.  They bring the gross
proceeds from London sales for the year to £68.1m, representing a net surplus
of 40.7% above December 2013 book value.  We are recycling this capital into
our extensive development programme." 
 
-ends- 
 
For further information, please contact:

Derwent London                                                 John Burns,
Chief Executive Officer
Tel: +44 (0)20 7659 3000/3085                                        David
Silverman, Director, Investments
                                                                              
     Louise Rich, Head of Investor Relations 
 
Brunswick Group                                                          
Simon Sporborg
Tel:  +44 (0)20 7404 5959                                              
Elizabeth Adams 
 
Notes to editors 
 
Derwent London plc owns a portfolio of commercial real estate predominantly in
central London valued at £3.4bn as at 31 December 2013, making us the largest
London-focused real estate investment trust (REIT).   The Group will be
announcing interim results for the six months to 30 June 2014 on 14 August
2014. 
 
Our 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. 
 
We typically acquire properties off-market with low capital values and modest
rents in improving locations, most of which are either in the West End or the
Tech Belt.  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. 
 
Landmark schemes in our portfolio of 5.7 million sq ft as at 31 December 2013
include Angel Building EC1, The Buckley Building EC1, White Collar Factory
EC1, 1-2 Stephen Street W1, Horseferry House SW1 and Tea Building E1. 
 
In 2014 to date the Group has won the Property Week 'Developer of the Year'
and has been shortlisted for awards by Architects' Journal and RICS. 
 
In 2013 Derwent London topped the real estate sector for the fourth year in a
row and came tenth overall in the Management Today awards for 'Britain's Most
Admired Companies'.  During the year the Group was also awarded EPRA Gold for
corporate and sustainability reporting, two OAS awards and AJ Retrofit and NLA
awards. 
 
For further information see www.derwentlondon.com or follow us on Twitter at
@derwentlondon. 
 
This information is provided by RNS
The company news service from the London Stock Exchange