Derwent London sells Clerkenwell office – Derwent London has sold a central London office building for £103m and reports strong half year results.
It has exchanged contracts to sell The Buckley Building, in Clerkenwell, London for £103m.
The 85,100 sq ft office building, which produces annual income of £4.87m, has been sold to to CBRE Global Investors at a net yield of 4.43%.
Derwent acquired the building in 2007 and completely refurbished it in 2013. The refurbishment increased the lettable area by 10,000 sq ft utilising redundant atrium space, added new external terraces and repositioned the entrance to face Clerkenwell Green. The sales price was achieved following recent active management initiatives increasing income through rent reviews and a lease extension.
The sale is part of Derwent’s strategy to sell off mature buildings. It takes its disposals so far this year to more than £180m, which will be recycled into its on-site development programme.
The sale was announced as part of Derwent’s half-year prelim results. The company increased it EPRA NAV per share by 3.7% year-on-year to 3.852p. It has raised its interim dividend by 9.9% to 21.00p per share.
New lettings in the period totalled £18.1m, 7.5% above December 2018 estimated rental value (ERV). Net rental income from its portfolio was up 7.1% to £86.3m. Its portfolio increased in value by 1.9% to £5.4bn.
DLN : Derwent London sells Clerkenwell office
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