Derwent London has confirmed its £75m purchase of office building Angel Square, EC1.
The REIT said it had exchanged contracts to buy the freehold of the 128,700 sq ft block. The price reflected a 3.05% net initial yield.
As tipped by Estates Gazette last week, the developer outgunned a pack of bidders for the trio of interconnecting buildings above Angel Underground station.
Passing rent is £2.4m pa. The majority of the leases expire in March 2015.
John Burns, chief executive of Derwent London, said: “We are pleased to have acquired a significant property in this fast-improving area. It provides short-term asset management opportunities, and longer term we expect to reposition the buildings to replicate our successes in nearby properties.”
Sources said Expedia, which occupies 100,000 sq ft in Derwent’s nearby Angel Building, could take more space at Angel Square when existing occupiers potentially free up space at the property.
CBRE was appointed to find a buyer for the asset on behalf of Berlinovo Immobilien for £52.5m – a 4.3% yield.
