Derwent London has exchanged contracts to sell its long leasehold interest in 40 Chancery Lane for £121.3m.
The 103,700 sq ft office and retail building is let to Publicis Group until July 2035, with a tenant break in July 2033, at a net income of £5.5m per annum.
The sale price represents a net yield to the purchaser, Deka Immobilien, of 4.25%. The disposal price net of rental top-ups and costs is 3.8% above June 2019 book value.
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.”
DLN : Derwent London sells London midtown asset for £121.3m