Derwent London has sold 90 Whitfield Street in London’s Fitzrovia to Lone Star Real Estate for £110.5m.
The sale price reflects a capital value of circa £1,100/sq ft and a 5% net initial yield and is slightly below the December 2025 book value.
This 107,000 sq ft building, which was developed in 2007, comprises 99,000 sq ft of office space and 8,000 sq ft of retail space on the ground floor.
The building has a passing income of £5.9m per annum, is 88% occupied and has a WAULT to break of 3.7 years.
Paul Williams, chief executive of Derwent London, said: “Following the successful conclusion of a number of recent lettings, we took the decision to dispose of this relatively mature property. Capital recycling is a key component of our business model and the proceeds have been earmarked for reinvestment into higher returning opportunities. These include capital expenditure at our major projects, where we forecast attractive IRRs, as well as other alternative accretive uses.”
Jérôme Foulon, global head of commercial real estate at Lone Star, added: “We have strong conviction in the central London office market and continue to believe with the right asset management strategy a well-positioned London West End property such as 90 Whitfield provides meaningful embedded upside.”
Jeremie Goldsztain, senior managing director and head of Europe real estate at Lone Star, said: “This is a high-quality asset with strong underlying fundamentals given its Fitzrovia location and amenities. We believe that there are significant opportunities to further enhance the rental tone and institutional desirability by deploying further capital into refurbishment and sustainability upgrades.”
