Source - SMW
Derwent London said it had exchanged contracts to sell its long leasehold interest in a London office property to Deka Immobilien for £121.3m.

The 103,700 square foot office and retail building at 40 Chancery Lane was 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 represented a net yield to the purchaser of 4.25% and the disposal price net of rental top-ups and costs was 3.8% above June 2019 book value.

'The disposal of 40 Chancery Lane typifies Derwent London's strategy of recycling mature assets,' chief executive Paul Williams said.

'The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects.'                   

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