Derwent London PLC 1-5 Grosvenor Place SW1 (3426H)
June 19 2013 - 2:00AM
UK Regulatory
TIDMDLN
RNS Number : 3426H
Derwent London PLC
19 June 2013
19 June 2013
Derwent London in talks to sell its interest in 1-5 Grosvenor
Place SW1 to Peninsula Hotels for GBP132.5 million
Following the announcement made by The Hongkong & Shanghai
Hotels, Limited ("Peninsula Hotels") on the Hong Kong Stock
Exchange, Derwent London plc ("Derwent London"/ "the Group")
announces that it has entered into non-binding heads of terms to
sell its 50% interest in 1-5 Grosvenor Place SW1 to Peninsula
Hotels for GBP132.5 million before costs. As at 31 December 2012
the Group's interest was valued at GBP78 million. The proposed
transaction reflects a 70% premium to that valuation.
The existing properties comprise mainly offices and extend to
168,000 sq ft (15,600m(2) ), net, at Hyde Park Corner,
Belgravia.
In 2012, Derwent London and Grosvenor, the freeholder of 1-5
Grosvenor Place, restructured their interests and established a
joint venture. Under that agreement Derwent London's leases, which
were due to expire in 2063 and 2084, were restructured onto a
150-year term. Simultaneously the Group sold 50% of its ownership
to Grosvenor for GBP67.3 million.
On completion of the proposed transaction with Peninsula Hotels,
Derwent London will have received proceeds of almost GBP200 million
from 1-5 Grosvenor Place since the start of 2012.
It is intended that, following the disposal of Derwent London's
interest, Peninsula Hotels and Grosvenor will work together towards
redevelopment of the site as an hotel and residential scheme.
The heads of terms entered into with Peninsula Hotels are not
legally binding and consequently the sale may or may not
proceed.
Derwent London has a committed capital expenditure programme of
around GBP400 million and is currently on site at projects
totalling over 400,000 sq ft (37,200m(2) ). Over the next 12 months
Derwent London will start construction of a further 345,500 sq ft
(32,050m(2) ) with our White Collar Factory offices at Old Street
EC1, retail space at 18-30 Tottenham Court Road W1 complementing
our current office scheme at 1-2 Stephen Street W1 (together
127,000 sq ft/ 11,800m(2) ) and a residential development at 73
Charlotte Street W1. The regeneration of 385,000 sq ft (35,800m(2)
) at 80 Charlotte Street W1 will now commence in early 2015.
John Burns, Chief Executive Officer at Derwent London,
commented:
"These heads of terms move Derwent London towards securing most
of our anticipated gain from the redevelopment of 1-5 Grosvenor
Place. The Group will receive the proceeds five to six years ahead
of the expected completion date for the scheme and continues to
invest in other opportunities, principally its extensive
development pipeline which amounts to over 2.5 million sq ft of
space that could potentially be delivered before 2020."
-ends-
For further information please contact:
Derwent London 020 7659 3000
John Burns, Chief Executive Officer
Damian Wisniewski, Finance Director
Paul Williams, Executive Director
Louise Rich, Head of Investor Relations
Brunswick Group 020 7404 5959
Elizabeth Adams
Sheena Shah
Notes to editors
Derwent London
Derwent London owns a portfolio of commercial real estate
predominantly in central London valued at GBP2.9bn as at 31
December 2012, making us the largest London-focused real estate
investment trust (REIT).
Our experienced team has a proven record of value creation
through development, refurbishment and asset management activities.
We take a fresh approach to each building, adopting a design-led
and tenant-led philosophy. We focus on buildings with reversionary
mid-market rents, particularly those in improving locations around
the West End and the City borders.
The business is grounded on a strong balance sheet with modest
leverage, a robust income stream and flexible financing.
Landmark schemes in our portfolio of 5.4 million sq ft
(505,800m(2) ) as at 31 December 2012 include Angel Building EC1,
Buckley Building EC1, Qube W1, Horseferry House SW1 and Tea
Building E1.
Derwent London came seventh overall in the 2012 Management Today
awards for 'Britain's Most Admired Companies', topping the real
estate sector for the third year in a row. Earlier in 2012 the
Group won the Estates Gazette Property Company of the Year -
Offices award. Last year the Tea Building also won a RIBA regional
award and an AJ Retrofit award for the 'Green Tea' refurbishment to
improve the environmental performance of the building.
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
DISUWVBROAANAAR
Derwent London (LSE:DLN)
Historical Stock Chart
From May 2024 to Jun 2024
Derwent London (LSE:DLN)
Historical Stock Chart
From Jun 2023 to Jun 2024