REG - Derwent London PLC - Sale of 19 Charterhouse Street EC1

Derwent LondonAnnouncement

16/01/2023 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230116:nRSP7285Ma&default-theme=true

RNS Number : 7285M  Derwent London PLC  16 January 2023

 

16 January 2023

Derwent London plc ("Derwent London" / "the Group")
SALE OF 19 CHARTERHOUSE STREET EC1

Derwent London announces that it has exchanged contracts to sell its 63,170 sq
ft freehold interest in 19 Charterhouse Street EC1 for £54.0m before costs.
The purchaser is a family office advised by Morgan Capital and BNF Capital
Limited.

 

The building, which was purchased in November 2013 for £41.3m after costs, is
occupied by the London College of Accountancy on a lease expiring in August
2025. The passing rent is £2.6m pa. The disposal price represents a 4.6% net
initial yield to the purchaser, a capital value of £855 psf and reflects a
marginal discount to June 2022 book value.

 

Paul Williams, Chief Executive of Derwent London, said:

"This sale forms part of our ongoing strategy of reducing our exposure to
smaller buildings with less repositioning potential. As the flight to quality
continues and occupiers become increasingly selective, proceeds will be
recycled into our exciting development pipeline where we are currently on site
with 435,000 sq ft of net zero carbon projects which we expect will deliver
attractive returns."

 

For further information, please contact:

 

 Derwent London             Paul Williams, Chief Executive

 Tel: +44 (0)20 7659 3000   Nigel George, Executive Director

                            Robert Duncan, Head of Investor Relations

 Brunswick Group            Nina Coad

 Tel: +44 (0)20 7404 5959   Emily Trapnell

 

 

Notes to editors

Derwent London plc

Derwent London plc owns 75 buildings in a commercial real estate portfolio
predominantly in central London valued at £5.9 billion as at 30 June 2022,
making it the largest London-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 development 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 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.

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. In 2019 the Group
became the first UK REIT to sign a Revolving Credit Facility with a 'green'
tranche. At the same time, we also launched our Green Finance Framework and
signed the Better Buildings Partnership's climate change commitment. The Group
is a member of the 'RE100' which recognises Derwent London as an influential
company, committed to 100% renewable power by purchasing renewable energy, a
key step in becoming a net zero carbon business. Derwent London is one of only
a few property companies worldwide to have science-based carbon targets
validated by the Science Based Targets initiative (SBTi).

Landmark buildings in our 5.6 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, Horseferry House SW1 and Tea Building E1.

In January 2022 we were proud to announce that we had achieved the National
Equality Standard - the UK's highest benchmark for equality, diversity and
inclusion. In October 2022, 80 Charlotte Street won the BCO's Best National
Commercial Workplace award 2022. In October 2021, the Group won EG's UK
Company of the Year award and in January 2022 came top of the Property Sector
and 38th position overall in Management Today's Britain's Most Admired
Companies awards 2021. In 2013 the Company launched a voluntary Community Fund
which has to date supported well over 100 community projects in the West End
and the Tech Belt.

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 Twitter at @derwentlondon

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  DISNKNBPPBKDFDD