Derwent London plc (LON:DLN) has announced that it has exchanged contracts with Lone Star Real Estate for the disposal of 90 Whitfield Street W1 for £110.5m before costs. The sale price reflects a capital value of c.£1,100 psf, a 5.0% net initial yield and is slightly below December 2025 book value. Completion is scheduled for August 2026.
This 103,500 sq ft Fitzrovia freehold property, which was developed in 2007, has a passing income of £5.9m pa, is 88% occupied by area and has a relatively short WAULT to break of 3.7 years. The sale is expected to be broadly earnings neutral and will reduce the Group’s leverage ratios.
Paul Williams, Chief Executive of Derwent London, said: “Following the successful conclusion of a number of recent lettings, we took the decision to dispose of this relatively mature property. Capital recycling is a key component of our business model and the proceeds have been earmarked for reinvestment into higher returning opportunities. These include capital expenditure at our major projects, where we forecast attractive IRRs, as well as other alternative accretive uses.”
