Property developer Derwent has acquired a major London office in Midtown for a reported £59.3m.
The central London focussed Real Estate Investment Trust (REIT) has agreed the fee to purchase 22 Kingsway from Harel Insurance & Finance Group and Clal Insurance Group.
The eight storey property offers 91,400 sq ft of prime London office space and is let to King’s College London. As part of the deal, Derwent has also acquired the freehold interest of the Peacock Theatre on Portugal Street, currently let to the London School of Economics.
Derwent London chief executive officer, John Burns, said: “The off-market purchase of this prominent block provides an attractive initial yield, with good prospects for growth on review next year.
“With the continued improvement of Covent Garden and the wider Midtown area, 22 Kingsway offers regeneration opportunities in the longer term.”
Derwent London is a leading British-based property investment and development business. It is headquartered in London and is a constituent of the FTSE 250 Index.
As of June 2013, its portfolio of commercial real estate, predominantly focussed on the central London region and including The Buckley Building and Angel Building in EC1, Qube in W1 and Tea Building in E1, has been valued at £3.1bn, making it the largest London focussed REIT.
By: Kirsty MacGregor
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