Derwent completes Wedge House sale

Real estate investment trust Derwent London has received £33.5m from Ennismore after completing the sale of a property in South London.

The FTSE 250 group sold Wedge House, located at 40 Blackfriars Road SE1, a 38,700 square feet vacant freehold office building, which will be included in a 110,000 square feet hotel and office scheme that was approved by the London Borough of Southwark earlier this year.

Ennismore will undertake the development and operate The Hoxton, Southwark , a 68,200 square feet hotel that will comprise 192 rooms, a restaurant, conference space and a rooftop bar as well as 41,800 square feet of offices.

Construction is expected to begin early next year and Derwent will be retained as development manager during the process, receiving £1.5m for the role.

"Obtaining planning permission and the subsequent sale has allowed us to release value early,” said Derwent director Nigel George.

“The proceeds will be used for our ongoing development pipeline.”

Derwent shares were up 0.51% to 3,746.00p at 0812 GMT on Monday.