Derwent London has gareed to sell its long leasehold interest in 40 Chancery Lane WC2 to Deka Immobilien for £121.3 million.
The 103,700 sq ft office and retail building is let to Publicis Groupe until July 2035, with a tenant break in July 2033, at a net income of £5.5m per annum.
The sale price represents a net yield to the purchaser of 4.25%. The disposal price net of rental top-ups and costs is 3.8% above June 2019 book value.
40 Chancery Lane, designed by Bennetts Associates, provides eight floors of high quality offices, a retail unit of 4,400 sq ft and a new public courtyard that brings additional daylight into the office floors. The development was completed in 2015.
“The disposal of 40 Chancery Lane typifies Derwent London’s strategy of recycling mature assets. The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects,” said Paul Williams, Chief Executive at Derwent London.