UK's Derwent London has exchanged contracts on the sale of its freehold interest in 28 Dorset Square, London NW1 to a private UK investor for £17 mln (EUR 18 mln). The sale price reflects a net initial yield of 6.1% and represents a 5% premium over the valuation at end-2008.
UK's Derwent London has exchanged contracts on the sale of its freehold interest in 28 Dorset Square, London NW1 to a private UK investor for £17 mln (EUR 18 mln). The sale price reflects a net initial yield of 6.1% and represents a 5% premium over the valuation at end-2008.
Located next to Marylebone station, the four-storey office building totals 23,530 sq ft (2,136 m2) of space. The property underwent comprehensive refurbishment in 2006 and was subsequently let to Bacardi Global Brands on a 15-year lease, expiring in 2021, at a rent of £1.1 mln per annum. The rent is subject to an upward only rent review in 2011 and five-yearly thereafter. The 2006 redevelopment of the property was undertaken by architects John McAslan + Partners and won a Royal Institute of British Architects (RIBA) Design Award in 2007.
John Burns, CEO of Derwent London, said: 'This transaction represents the continuation of our selective disposals programme of mature assets in order to recycle capital within the portfolio.'
