Derwent London has exchanged contracts for the disposal of the freehold interest in 57 Broadwick Street, London W1 to Shaftesbury plc for £30.75 million (approx. €36.67 million) before costs.
The property provides 24,900 ft² (approx. 2,310 m²) of office and retail accommodation. The office component set over ground, first to third and part fourth floor of the podium comprises 23,200 ft² (approx. 2,150 m²) and is let on a lease to Jaeger London Limited due to expire in June 2015.
The retail element totals 1,700 ft² (approx. 160 m²) and is currently let to Comptoir Soho Limited until June 2015.
Together these produce an annual rental income of £0.9 million. The disposal reflects a net initial yield to the purchaser of 2.7%.
The upper floors of the property comprise 37 residential units held on a long lease expiring 2156 at a peppercorn rent.
John Burns, Chief Executive Officer at Derwent London, commented: “The disposal is in line with our strategy of making opportunistic sales into a competitive investment market. In realizing a value significantly in excess of the December 2013 valuation we will take the opportunity to recycle capital into our extensive development program, where we are currently on site with a total of 586,000 ft².”
Source: Derwent London