Derwent London PLC DISPOSAL OF 40 CHANCERY LANE WC2 (7289X)
December 23 2019 - 2:00AM
UK Regulatory
TIDMDLN
RNS Number : 7289X
Derwent London PLC
23 December 2019
Derwent London plc ("Derwent London" / "the Group")
DISPOSAL OF 40 CHANCERY LANE WC2
Derwent London is pleased to announce it has exchanged contracts
to sell its long leasehold interest in 40 Chancery Lane WC2 to Deka
Immobilien for a headline price of GBP121.3m. The 103,700 sq ft
office and retail building is let to Publicis Groupe until July
2035, with a tenant break in July 2033, at a net income of GBP5.5m
per annum. The sale price represents a net yield to the purchaser
of 4.25%. The disposal price net of rental top-ups and costs is
3.8% above June 2019 book value.
40 Chancery Lane, designed by Bennetts Associates, provides
eight floors of high quality offices, a retail unit of 4,400 sq ft
and a new public courtyard that brings additional daylight into the
office floors. The development was completed in 2015.
Paul Williams, Chief Executive at Derwent London, said:
"The disposal of 40 Chancery Lane typifies Derwent London's
strategy of recycling mature assets. The proceeds will be
reinvested into our substantial development programme as well as
providing more headroom for new acquisitions and future pipeline
projects."
- ends -
For further information, please contact:
Derwent London Paul Williams, Chief Executive
Tel: +44 (0)20 7659 3000 David Silverman, Director
Quentin Freeman, Head of Investor
Relations
Brunswick Group Nina Coad
Tel: +44 (0)20 7404 5959 Emily Trapnell
Notes to editors
Derwent London plc
Derwent London plc owns 84 buildings in a commercial real estate
portfolio predominantly in central London valued at GBP5.4 billion
(including joint ventures) as at 30 June 2019, making it the
largest London-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, in October 2019, Derwent London became the first UK
REIT to sign a Green Revolving Credit Facility. 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 only a few property
companies worldwide to have science-based carbon targets validated
by the Science Based Targets initiative (SBTi).
Landmark schemes in our 5.7 million sq ft portfolio include
Brunel Building W2, White Collar Factory EC1, Angel Building EC1,
1-2 Stephen Street W1, Horseferry House SW1 and Tea Building
E1.
In 2019, the Group has won several awards including EG Offices
Company of the Year, the CoStar West End Deal of the Year for
Brunel Building, Westminster Business Council's Best Achievement in
Sustainability award and topped the real estate sector and was
placed ninth overall in the Management Today 2019 awards for
'Britain's Most Admired Companies'. In 2013 the Company launched a
voluntary Community Fund and has to date supported 96 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 or follow us
on 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 or visit www.rns.com.
END
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