REG - Derwent London PLC - Successful completion of 25 Baker Street

Derwent LondonAnnouncement

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RNS Number : 6211C  Derwent London PLC  09 October 2025

 

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

 Successful completion of 25 Baker Street

Derwent London is pleased to announce that its 25 Baker Street W1 development,
located within a 10-minute walk of Bond Street Elizabeth line station,
recently reached practical completion. This marks an important milestone in
realising value from one of the Group's major developments, delivering a yield
on completion of 7.5% and an ungeared IRR of 11.3%.

25 Baker Street strengthens the Group's long-dated income profile, with its
average unexpired lease term (to break) of 13.5 years, more than 70% of which
is on 15-year leases without break. The successful pre-letting of all the
offices also demonstrates strong occupier appeal, giving us additional
confidence in our 50 Baker Street scheme opposite. Together, these
developments will create a significant cluster, enhancing the local area.

Leases commenced in September for the fully pre-let 204,000 sq ft office
element (annual headline rent £21.2m, agreed on average 16.5% above the
appraisal ERV) and the three pre-let retail units (combined rent £0.4m). This
new income stream will make a positive contribution to 2025 earnings.

Contracts have been exchanged on £115.9m of private residential units (before
transaction costs) at 100 George Street W1, developed in partnership with
Native Land. These sales represent more than 70% of the residential space. Of
this, £94.2m has now completed with a further £21.7m expected over the
coming months. In addition, a further £11.0m has been received from the
freeholder, The Portman Estate, in relation to the Loxton Walk retail units
and the Gloucester Place offices. Prior to redeployment of all proceeds
received to date, net debt/EBITDA reduces by c.0.6x (June 2025: 9.7x).

The project's embodied carbon intensity is c.600 kgCO(2)e/sqm, in line with
our 2025 target and GLA requirements, and it will be our first NABERS-rated
building. With BREEAM Outstanding certification expected and a strong focus on
design-led sustainability and wellbeing, the project sets a benchmark for
responsible development. This reflects Derwent London's commitment to
delivering high quality, low carbon buildings.

Paul Williams, Chief Executive of Derwent London, said:

"Achieving completion with the offices 100% pre-let and over two-thirds of the
residential element pre-sold highlights the ongoing strength of the West End
market and the quality of the space we have delivered. 25 Baker Street
showcases our ability to deliver best-in-class, future-proof buildings that
meet occupier demand. Proceeds from the residential sales have further
enhanced our financial flexibility, and our disciplined approach to capital
allocation reinforces our long-term value creation strategy."

For further information, please contact:

 Derwent London                             Paul Williams, Chief Executive

 Tel: +44 (0)20 3478 4217 (Robert Duncan)   Damian Wisniewski, Chief Financial Officer

                                            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 £5.2 billion as at 30 June 2025, 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 5.3 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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