Derwent London has disposed of two freehold properties at 186 City Road, EC1, and 35-37 Kentish Town Road, NW1, for a combined £37.4m.
The City Road property is a 38,300 sq ft freehold office which sold to a private buyer for £23.3m at a net initial yield of 4.1%. The offices are fully let at a total headline rent of £1m per year. The sale price reflects at 54.1% net premium to the December 2013 valuation.
The Kentish Town Road property sold for £14.1m to an unnamed institutional investor at a net initial yield of 3.8%. The 24,500 sq ft office building is fully let until 2019 at £150,000 per year, with rolling breaks from June 2015. The sale price is at a 41.5% net premium to December 2013 valuation.
Chief executive officer John Burns said that Derwent would recycle the capital into the company’s development programme.
Derwent has raised £68.1m gross proceeds from London sales so far this year.
Sophia.Furber@estatesgazette.com
