UK commercial real estate owner Derwent London is selling the 164,900sqft global headquarters of British fashion brand Burberry to an overseas investor for £131.8m (€151m).
The listed London office-focused real estate investment trust has agreed to sell Horseferry House SW1, in Westminster, to the unnamed buyer in a deal expected to be completed in June 2026.
The disposal follows previous reports that Derwent had placed Horseferry House on the market with a guide price of £145m.
Derwent said the sale price is marginally below the December 2025 book value.
Derwent acquired Horseferry House in 2005 for £34m and completed a refurbishment prior to pre-letting the asset to Burberry. In late 2025, the lease was regeared to extend the term to 2043, incorporating two five-yearly fixed uplifts in 2033 and 2038.
Paul Williams, chief executive officer of Derwent London, said: “Our disposal of Horseferry House crystallises a circa 8.4% internal rate of return over our 21-year ownership, outperforming the MSCI Central London Office Index by 240bp pa.
“We have now exchanged contracts on £275m of sales since the start of the year and are in discussions on a further £100m, as part of our three year disposals target of £1bn.”
To read the latest IPE Real Assets magazine click here.
