Derwent London has acquired the remaining 50% stake in its proposed 50 Baker Street, W1, scheme from joint venture partner Lazari Investments.
The firm has paid £44.4m for the stake, reflecting a net initial yield of 4.2% at the current passing income of £2m pa.
Resolution to grant planning consent for the 240,000 sq ft office-led scheme at 50 Baker Street – almost double the existing floor area – was received in August this year. Detailed design work is under way.
Derwent said the decision to acquire full control of 50 Baker Street was taken following the preletting success at its adjacent 25 Baker Street project and reflected its ongoing confidence in the strength of the West End occupational market.
The firm added that good progress was being made on a regear of the headleases with freeholder the Portman Estate and the owner of 64 Baker Street to facilitate delivery of the scheme.
Derwent chief executive Paul Williams said: “West End vacancy remains low and demand from high-quality occupiers across a broad range of business sectors continues to outpace supply. Underpinned by our confidence that the property cycle has inflected, we believe now is the time to acquire well-located regeneration opportunities.
“Our decision to take full ownership of 50 Baker Street reflects this and marks the conclusion of a successful partnership with Lazari. We look forward to progressing the project to the next stage, with works expected to commence on site in H1 2026.”
Nicholas Lazari, director of Lazari Investments, added: “The sale of our 50% interest in 50 Baker Street marks the culmination of a successful partnership with Derwent London. Following receipt of the resolution to grant planning in August and having made good progress on the regear with the Portman Estate, we feel the time is right to capitalise on our efforts. The cash proceeds from the sale ensures that the equity requirements for our exciting and extensive West End development pipeline are now fully funded and puts us in a strong position to realise opportunities that may arise.”
Image from Derwent London
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