Derwent buys Whitechapel building from RBS for £132m

13th Jul 2015 10:05

(ShareCast News) - Derwent London has exchanged contracts to acquire the freehold of Aldgate Union, Whitechapel High Street, from the Royal Bank of Scotland for £132m before costs.The building will be acquired with vacant possession in December 2015, and at a price that reflects a capital value of £518 per square foot.Derwent said the acquisition demonstrates its commitment to London's rapidly improving Tech Belt, and its confidence in the strong levels of occupier demand.The property sits on a one acre site and comprises a substantial eight-storey office building totalling 255,000 square feet over ground, seven upper floors and two lower ground floors. The property has generous floor to ceiling heights, good natural light and excellent transport connections and is located directly opposite Aldgate East underground station and close to Liverpool Street and Whitechapel Crossrail stations.It is currently occupied by RBS and was comprehensively refurbished in 2008.Chief Executive Officer John Burns said: "We are delighted to have acquired a prominent property in this fast improving Whitechapel location which increases our Tech Belt holdings to 2.4m square feet. Although soon to be vacant the building is in good condition and we expect to quickly re-let it on a multi-occupier basis after modest refurbishment. As with most of our recent purchases this property offers significant longer term regeneration opportunities and adds to our future development pipeline."In a separate statement, Derwent said it has pre-let almost 70,000 square feet on the lower floors at White Collar Factory in EC1 - a development overlooking Silicon roundabout in the heat of London's Tech Belt.The office group will take five floors in the 16-storey office tower. The combined rent totals £4m per annum, or £57.50 per square foot, which is 12.7% above the estimated rental value on these lower floors at December 2014. At 09:47, shares were up 1.6% at 3,596p.