Trust sells stake in London location

Wednesday, March 18, 2009

Derwent London has sold its stake in a city centre building

Derwent London has announced it will sell its stake in a central London location to a private investor for £17 million.

The building, beside Marylebone station, contains numbers 26, 27 and 28 Dorset Square and 2, 4 and 6 Boston Place.

There are 23,530 sq ft of office space available across the four-storey construction.

After refurbishment in 2006, Bacardi Global Brands agreed a 15-year lease on the facility until 2021 with rent being set at £1.1 million per year.

This amount would be analysed in 2011 with further rent reviews taking place every five years.

John Burns, chief executive of Derwent London, said: "This transaction represents the continuation of our selective disposals programme of mature assets in order to recycle capital within the portfolio."

The company made an initial yield of 6.1 per cent on the sale and the price represents a five per cent premium on the valuation from December 2008.

At the end of last year, Derwent's investment portfolio was valued at £2.1 billion.

Source: ask-re The Property People LLP