Derwent London plans to sell off £150 mln (EUR 221 mln) of property as the newly merged company adjusts its portfolio to focus exclusively on the UK capital. Chairman Robert Rayne explained to the annual shareholders meeting on Wednesday that the majority of the non-core assets will be sold after the company converts to real estate investment trust (REIT) status on 1 July in order to benefit from the saving of capital gains tax that the REIT structure offers. 'A number of further sales are now at an advanced stage and marketing of our substantial residential site at Greenwich has commenced,' Rayne said.
Derwent London plans to sell off £150 mln (EUR 221 mln) of property as the newly merged company adjusts its portfolio to focus exclusively on the UK capital. Chairman Robert Rayne explained to the annual shareholders meeting on Wednesday that the majority of the non-core assets will be sold after the company converts to real estate investment trust (REIT) status on 1 July in order to benefit from the saving of capital gains tax that the REIT structure offers. 'A number of further sales are now at an advanced stage and marketing of our substantial residential site at Greenwich has commenced,' Rayne said.
In an upbeat assessment of the company's core market, Rayne said that tenant demand for space in Derwent's properties in London remains very strong and that the area has witnessed 'excellent rental growth' so far this year. 'We expect this pattern to continue given the insufficient supply of Grade A offices in the West End.'
Derwent London was created from the £1 bin takeover of London Merchant Securities by Derwent Valley earlier this year.
