REG - Derwent London PLC - Sale of Turnmill EC1

Derwent LondonAnnouncement

25/04/2024 10:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240425:nRSY0243Ma&default-theme=true

RNS Number : 0243M  Derwent London PLC  25 April 2024

 

25 April 2024

Derwent London plc ("Derwent London" / "the Group")
Sale of Turnmill EC1

Derwent London announces that it has exchanged contracts to sell its 70,300 sq
ft freehold interest in Turnmill EC1 for £77.35m (before costs). The
purchaser is the UK investment manager Titan Investors.

 

The redevelopment of this architecturally striking building in the heart of
Clerkenwell completed in 2015 and it is let to Publicis Groupe, at a passing
rent of £4.0m, on a lease expiring in 2035, with a tenant break in 2033. The
disposal price reflects a net initial yield to the purchaser of 4.9% with a
rent review in 2025, a capital value of £1,100 psf and is at a small premium
to the December 2023 book value.

 

Paul Williams, Chief Executive of Derwent London, said:

"This disposal crystallises an attractive 9.1% IRR for the Group as the London
office investment market reopens. Proceeds will be recycled into our two
exciting on-site net zero carbon West End developments, 25 Baker Street W1 and
Network W1, which together total 437,000 sq ft, while enhancing our financial
capacity as opportunities are beginning to emerge."

 

 

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 66 buildings in a commercial real estate portfolio
predominantly in central London valued at £4.9 billion as at 31 December
2023, 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 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 the
property companies worldwide to have science-based carbon targets validated by
the Science Based Targets initiative (SBTi).

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, 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 May 2023 we were recognised on the Sunday Times Best Places to
Work List 2023 within the medium-sized organisation category and in the
following month we won two OAS awards - West End New Build for Soho Place W1
and Developer of the Year whilst we were also highly commended for The
Featherstone Building in the City New Build category. In October 2023, White
Collar Factory EC1 won the BCO's Test of Time 2023 award, Soho Place W1 won
the British Construction Industry Awards' Best Commercial Property Project of
the Year and Derwent London was awarded the EG Employer Award. In March 2023
we placed in the top three of the Property Sector in Management Today's
Britain's Most Admired Companies awards 2022. In October 2022, 80 Charlotte
Street won the BCO's Best National Commercial Workplace award 2022.  In 2013
the Company launched a voluntary Community Fund which has to date supported
over 160 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 X (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  DISPPUBCCUPCURA