Derwent London has exchanged contracts to sell its 63,170ft² freehold interest in 19 Charterhouse Street EC1 for €61m (£54m) before costs. The purchaser is a family office advised by Morgan Capital and BNF Capital Limited.
The building, which was purchased in November 2013 for €46.6m (£41.3m) after costs, is occupied by the London College of Accountancy on a lease expiring in August 2025. The disposal price represents a 4.6% net initial yield to the purchaser.
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 435,000ft² of net zero carbon projects which we expect will deliver attractive returns."
