Derwent London has exchanged contracts to sell its 63,170 sq ft freehold interest in 19 Charterhouse Street, EC1, to a family office advised by Morgan Capital and BNF Capital, for £54m.
The developer acquired the building, which is occupied by the London College of Accountancy on a lease expiring in August 2025, in November 2013 for £41.3m. The passing rent at 19 Charterhouse Street is £2.6m per annum and the disposal price represents a 4.6% net initial yield to the purchaser, a capital value of £855/sq ft and a marginal discount to its June 2022 book value.
Paul Williams, chief executive of Derwent London, said: “This sale forms part of our ongoing strategy of reducing our exposure to smaller buildings with less repositioning potential. As the flight to quality continues and occupiers become increasingly selective, proceeds will be recycled into our exciting development pipeline where we are currently on site with 435,000 sq ft of net zero carbon projects which we expect will deliver attractive returns.”
