Derwent London PLC Acquisition (3662H)
July 11 2012 - 2:45AM
UK Regulatory
TIDMDLN
RNS Number : 3662H
Derwent London PLC
11 July 2012
11 July 2012
Derwent London plc ("Derwent London")
DERWENT LONDON ANNOUNCES THE ACQUISITION OF FRANCIS HOUSE,
VICTORIA SW1
Derwent London has completed the acquisition of Francis House,
11 Francis Street, London SW1 for GBP29.1 million before costs from
Property Class England 1, a fund managed by KGAL GmbH & Co.
KG.
Francis House is a 57,000 sq ft (5,300m(2) ) freehold office
building adjoining Derwent London's existing holdings at Greencoat
& Gordon House and 6-8 Greencoat Place. Together, these
properties comprise the majority of an island block covering
approximately 1.2 acres. Francis House is a former Victorian
depositary similar to the group's existing adjacent holdings, and
benefits from generous floor-to-ceiling heights and original
warehouse features.
The building is let to Channel Four Television under a lease
expiring in February 2020. The total annual income is GBP1.56
million until February 2015, when there is a fixed rent increase to
GBP1.66 million per annum, reflecting a net initial yield of 5.1%,
rising to 5.4%. Part of the ground floor together with the upper
floors, which comprise 42,600 sq ft (3,960m(2) ) of office space,
are let off a low average rent of GBP36.65 per sq ft (GBP395 per
m(2) ). In addition, there is storage space on the rest of the
ground floor and the basement totalling 14,400 sq ft (1,340m(2) )
which is under-let to House of Fraser at a nominal rent until
January 2054.
The majority of the space is sub-let and therefore offers a
range of asset management opportunities in the medium term. Rents
in the Group's adjoining Greencoat & Gordon House have achieved
in excess of GBP50 per sq ft (GBP540 per m(2) ), underpinning the
potential for rental growth.
John Burns, Chief Executive Officer at Derwent London,
commented:
"This acquisition increases our presence to over 570,000 sq ft
in Victoria, an improving West End village which is diversifying
from its traditional occupier base and attracting a wide range of
creative companies. It will provide us with immediate incremental
income, and consolidates our existing holdings within the same
block which will increase the longer term options available to
us."
-ends-
For further information, please contact:
Derwent London +44 (0) 20 7659 3000
John Burns, Chief Executive Officer
Louise Rich, Head of Investor Relations
Brunswick Group (acting for Derwent London) +44 (0) 20 7404 5959
Elizabeth Adams
Notes to editors
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, the
American Institute of Architects and New London Architecture. In
June 2012 the Tea Building won a RIBA regional award.
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
END
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