Derwent London has exchanged contracts to sell its freehold interest in the 70,300 sq ft Turnmill office building in Clerkenwell to Titan Investors for £77.35m.
The company completed the redevelopment of the building in 2015. Turnmill is let to Publicis Groupe at a passing rent of £4m, on a lease expiring in 2035, with a tenant break in 2033.
The disposal price reflects a net initial yield to the purchaser of 4.9% and is at a small premium to the December 2023 book value.
Paul Williams, chief executive of Derwent London, said: “This disposal crystallises an attractive 9.1% IRR for the group as the London office investment market reopens. Proceeds will be recycled into our two exciting on-site net zero carbon West End developments, 25 Baker Street W1 and Network W1, which together total 437,000 sq ft, while enhancing our financial capacity as opportunities are beginning to emerge.”
