Derwent agrees sale of Turnmill EC1 for £77.4m

Derwent London said on Thursday that it has exchanged contracts with investment manager Titan Investors for the sale of its 70,300 sq ft freehold interest in Turnmill EC1 for £77.35m.

The redevelopment of the building in Clerkenwell completed in 2015 and it is let to Publicis Groupe, at a passing rent of £4m, on a lease expiring in 2035, with a tenant break in 2033.

Derwent said the disposal price reflects a net initial yield to the purchaser of 4.9% with a rent review in 2025, a capital value of £1,100 per square foot and is at a small premium to the December 2023 book value.

Chief executive Paul Williams 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."