GROSVENOR AND DERWENT PARTNERSHIP (4120Y)
March 01 2012 - 2:02AM
UK Regulatory
TIDMDLN
RNS Number : 4120Y
Derwent London PLC
01 March 2012
1 March 2012
GROSVENOR AND DERWENT LONDON FORMALISE
PARTNERSHIP TO REDEVELOP LANDMARK WEST END SITE
Grosvenor and Derwent London are pleased to announce that,
following signature of their Memorandum of Understanding in October
2011, they have restructured their leases and established a joint
venture to work towards the redevelopment of 1-5 Grosvenor Place,
London SW1. The existing properties occupy a site of over 1.5
acres, at Hyde Park Corner, which offers the opportunity to
undertake a substantial mixed-use redevelopment, to include a
luxury hotel, office and residential uses. Architects are in the
process of being selected.
The existing buildings comprise mainly offices and extend to
168,000 sq ft (15,600m(2)), with the potential to increase the
floor area significantly upon redevelopment. They are currently
fully occupied with lease breaks in 2014 and 2016, at a gross
income of GBP6.2m per annum.
Under the agreement, Derwent London's leases, which were due to
expire in 2063 and 2084, have been restructured into a new 150-year
term at a ground rent of 5% of rental income. Grosvenor hold the
freehold. Simultaneously Derwent London has sold 50% of its
ownership to Grosvenor and received GBP60m.
John Burns, Chief Executive at Derwent London, commented:
"We are delighted to have formalised our joint venture with
Grosvenor. Having assembled the ownership of this site over many
years, this initiative unlocks the opportunity for a substantial
redevelopment in one of the best locations in the West End. We look
forward to working with the Grosvenor team, with their vast
experience in the area."
Giles Clarke, Grosvenor Britain & Ireland's Executive
Director with responsibility for its London estate, said:
"Signing this deal with Derwent London means we can now start
working up detailed plans for this important site. This is one of
the most exciting development opportunities currently available in
prime central London."
Derwent London will continue its asset management role at the
site with Grosvenor managing the development.
ENDS
For further information, please contact:
Derwent London +44 (0) 20 7659 3000
John Burns, Chief Executive Officer
Louise Rich, Head of Investor Relations
Grosvenor +44 (0) 20 7312 6101
Sorrel Comley, Public Relations Executive
Brunswick Group (acting for Derwent London) +44 (0) 207 404 5959
Elizabeth Adams
Notes to editors
About Grosvenor
Grosvenor is a privately owned property group with offices in 18
of the world's most dynamic cities. It has four regional investment
& development businesses in Britain & Ireland, the
Americas, Australia and Asia Pacific; an international fund
management business, which operates across these markets and in
continental Europe; and a portfolio of indirect investments. As at
31 December 2010, the Group had total assets under management of
GBP10.9bn. Unusually for a private company, Grosvenor publishes a
full Annual Report & Accounts, available at:
www.grosvenor.com
Grosvenor Britain & Ireland's strategy emphasises the
creation and management of successful places, with a particular
focus on high-end residential and mixed-use. The core portfolio
comprises 300 acres of Mayfair and Belgravia in London, which first
came into the Grosvenor family in 1677. Ownership and active
management of its London estate remains at the heart of Grosvenor
Britain & Ireland's strategy. Investment assets comprise the
largest part of its portfolio. Grosvenor Britain & Ireland also
undertakes development across London, and in selected city centres
around the UK. As at 31 December 2010, Grosvenor Britain &
Ireland had assets under management of GBP3.5bn.
About Derwent London plc
Derwent London plc is the largest central London focused REIT
with an investment portfolio of GBP2.6bn as at 31 December 2011.
The Group is one of London's most innovative office specialist
property regenerators and investors and is well known for its
design-led philosophy and creative management approach to
development.
Derwent London's core strategy is to acquire and own a portfolio
of central London property that has reversionary rents and
significant opportunities to enhance and extract value through
refurbishment, regeneration and redevelopment. The Group owns and
manages an investment portfolio of 5.4 million sq ft (501,000m(2)
), as at 31 December 2011, of which 96% is located in central
London, with a specific focus on the West End and the areas
bordering the City of London. Landmark schemes by Derwent London
include Angel Building EC1, Arup Phases II & III W1, Qube W1,
Horseferry House SW1, Johnson Building EC1, Davidson Building WC2
and Tea Building E1.
Derwent London came fifth overall in the 2011 Management Today
awards for 'Britain's Most Admired Companies' and has also recently
won the Estates Gazette Property Company of the Year - Offices
award. In 2011, Angel Building was shortlisted for the RIBA
Stirling Prize following its RIBA London 2011 award and has also
won numerous accolades from organisations such as the British
Council for Offices, the British Construction Industry and New
London Architecture. The Maple & Fitzroy development in
Fitzrovia W1, which completed in September 2010, also won a 2011
RIBA London and New London Architecture award.
For further information see www.derwentlondon.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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