Land Securities (LandSec) confirmed today that it has exchanged contracts for the sale of Devonshire House, London W1, to a wholly owned subsidiary of London-based DCD Group and US investor Witkoff Group for more than £280m.
The 186,472 sq ft landmark building, which is situated on an island site on Piccadilly between Stratton Street, Berkeley Street and Mayfair Place, generates more than £11m pa.
The offices are occupied by groups including Boston Consulting, Egon Zehnder International, Alliance Bernstein and Bain Capital, and the ground floor shops include a Marks & Spencer.
Last year the Abu Dhabi Royal Family came close to buying it, but the sale collapsed.
Scott Alper, principal for the Witkoff Group said: “We, along with DCD Group, are excited to be able to purchase Devonshire House, one of the most prestigious landmark properties in London’s Mayfair district.
“In light of the emergence of London as the financial capital of the world, Witkoff Group sees tremendous opportunity in the marketplace and is very excited to add Devonshire House to its London real estate holdings.”
Mike Hussey, managing director for the London Portfolio at LandSec, said: “We have owned Devonshire House since 1955 and during this time Land Securities has been able to create very considerable value for our shareholders through the property’s refurbishment and subsequent lettings.
“The strength of the investment market made it a very appropriate time to sell this prominent asset, and we have been able to secure a significant premium price.
“The proceeds of the sale will be reinvested in other investment and development projects in London, creating new trophies for the Group.”
LandSec was advised by Franc Warwick. Witkoff and DCD Group were advised by CBGA.
