Derwent London sells office building in 19 Charterhouse Street for £54m

Derwent London sells office building in 19 Charterhouse Street for 54m
Image: Courtesy of Derwent London

Derwent London has agreed to sell its 63,170 sq ft freehold interest in 19 Charterhouse Street, EC1 for £54m.

The purchaser is a family office advised by Morgan Capital and BNF Capital Limited.

The office building, which was purchased in November 2013 for £41.3m after costs, is occupied by the London College of Accountancy on a lease expiring in August 2025. The passing rent is £2.6m pa.

The disposal price represents a 4.6% net initial yield to the purchaser, a capital value of £855 psf and reflects a marginal discount to June 2022 book value.

Paul Williams, Chief Executive of Derwent London, said: “This sale forms part of our ongoing strategy of reducing our exposure to smaller buildings with less repositioning potential. As the flight to quality continues and occupiers become increasingly selective, proceeds will be recycled into our exciting development pipeline where we are currently on site with 435,000 sq ft of net zero carbon projects which we expect will deliver attractive returns.”