Derwent London has sold three non-core properties for £175 million (EUR 258 mln). The disposals are the first made by the Central London office specialist since its conversion to tax-efficient real estate investment trust (REIT) status on 1 July. The properties were acquired through Derwent Valley's merger with London Merchant Securities to create Derwent London last February. The company said that the combined sale price for the assets is £91.8 mln above their book value as of 31 January 2007.
Derwent London has sold three non-core properties for £175 million (EUR 258 mln). The disposals are the first made by the Central London office specialist since its conversion to tax-efficient real estate investment trust (REIT) status on 1 July. The properties were acquired through Derwent Valley's merger with London Merchant Securities to create Derwent London last February. The company said that the combined sale price for the assets is £91.8 mln above their book value as of 31 January 2007.
The largest disposal was of the Greenwich Reach, SE10 property, which has been sold to Galliard Homes unit Roamquest for £111.8 mln. The development is located on the south bank of the Thames River overlooking Canary Wharf, and has planning consent for 980 residential apartments as well as 6,600 m2 of commercial and retail space.
'Proceeds from the sales will be channelled into our substantial pipeline of refurbishment and redevelopment schemes as well as future acquisitions, ' Derwent London chief executive John Burns explained in a statement. 'Further disposals of non-core and provincial properties will follow. These sales underline the strength of the London property market and Derwent London's commitment to concentrate on major office and refurbishment schemes within our chosen Central London villages.' Derwent London's portfolio is valued at £2.4 bn.