Derwent to sell Clerkenwell office to Titan

Derwent London has exchanged contracts to sell the freehold for an office in Clerkenwell, EC1, for around £77.4m to investment manager Titan Investors. The 70,300 sq ft property, called Turnmill, is let to Publicis Group at £4m passing rent. Its lease expires in 2035, with a tenant break in 2033. The sale price reflects a 4.9% net initial yield to the buyer with a rent review in 2025. It will transact at a capital value of £1,100 per sq ft and a “small” premium to December book value. Paul Williams, chief executive of Derwent London, said: “This disposal crystallises an attractive 9.1% IRR for the group as the London office investment market reopens. “Proceeds will be recycled into our two exciting on-site net zero carbon West End developments, 25 Baker Street, W1 and Network, W1, which together total 437,000 sq ft, while enhancing our financial capacity as opportunities are beginning to emerge.” Savills is advising Derwent on the deal.