Derwent London has agreed a deal to sell the Horseferry House office building in Westminster, London, to an overseas investor for £131.8m.
The company acquired the 164,900 sq ft building in 2005 for £34m and subsequently completed a substantial refurbishment, during which it was pre-let to fashion brand Burberry as the firm’s global headquarters.
In late 2025, Burberry’s lease was regeared, extending the term by five years to 2043 (no breaks) and incorporating two new five-yearly fixed uplifts in 2033 and 2038. The sale price is marginally below the December 2025 book value.
Paul Williams, chief executive of Derwent London, said: “Our disposal of Horseferry House crystallises a circa 8.4% IRR over our 21-year ownership, outperforming the MSCI Central London Office Index by circa 240bp pa. We have now exchanged contracts on circa £275m of sales since the start of the year and are in discussions on a further circa £100m, as part of our three year disposals target of £1bn.”
