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RNS Number : 3529H
Derwent London PLC
03 December 2020
Derwent London plc ("Derwent London" / "the Group")
DISPOSAL OF JOHNSON BUILDING
Derwent London announces that it has exchanged contracts to sell
its 192,700 sq ft freehold interest in Johnson Building, 77 Hatton
Garden and 5-7 St Cross Street EC1 to Eurazeo Patrimoine, the real
assets division of Eurazeo. The headline price is GBP170m before
rental top-ups of GBP2.4m for incentives and vacant space.
The office and retail complex was acquired in 2000 for GBP29m,
and in 2006 the Group completed a significant refurbishment
designed by architects AHMM which increased the lettable area by
53%.
The total rent passing from the multi-let buildings is GBP7.3m
pa with approximately 40% of the income expiring in 2021.
The sale price represents a net initial yield of 4.1% on the
passing rent, which will fall to 2.5% allowing for 2021 lease
expiries. The disposal price, net of incentives, is 4% below the
June 2020 book value before costs. This crystallises an IRR of 10%
pa to the Group since acquisition.
Paul Williams, Chief Executive of Derwent London, said:
"The refurbishment of the Johnson Building was one of our first
generation of schemes and the sale continues our strategy of
disposing of mature assets. The proceeds will be reinvested into
new developments with superior growth prospects, such as 19-35
Baker Street W1 which is scheduled to start on site in 2021."
For further information, please contact:
Derwent London Paul Williams, Chief Executive
Tel: +44 (0)20 7659 3000 David Silverman, Executive 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 83 buildings in a commercial real estate
portfolio predominantly in central London valued at GBP5.4 billion
(including joint ventures) as at 30 June 2020, 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 5.6 million sq ft portfolio include 80
Charlotte Street W1, Brunel Building W2, White Collar Factory EC1,
Angel Building EC1, 1-2 Stephen Street W1, Horseferry House SW1 and
Tea Building E1.
In 2020 the Group has won several awards for Brunel Building
with the most prominent being the BCO Best Commercial Workplace
award. In 2019 the Group won 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 over 100 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
About Eurazeo
Eurazeo is a leading global investment company, with a
diversified portfolio of EUR18.8 billion in assets under
management, including EUR13.3 billion from third parties, invested
in over 430 companies. With its considerable private equity, real
estate and private debt expertise, Eurazeo accompanies companies of
all sizes, supporting their development through the commitment of
its nearly 300 professionals and by offering in-depth sector
expertise, a gateway to global markets, and a responsible and
stable foothold for transformational growth. Its solid
institutional and family shareholder base, robust financial
structure free of structural debt, and flexible investment horizon
enable Eurazeo to support its companies over the long term.
Eurazeo has offices in Paris, New York, Sao Paulo, Seoul,
Shanghai, Singapore, London, Luxembourg, Frankfurt, Berlin and
Madrid.
Eurazeo is listed on Euronext Paris.
ISIN: FR0000121121 - Bloomberg: RF FP - Reuters: EURA.PA
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.
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END
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