Derwent London Buys London Properties For GBP146M

28th Jul 2010 07:22

LONDON (Dow Jones)--Derwent London PLC (DLN.LN), a specialist central London property investment and regeneration REIT, said Wednesday it has exchanged contracts for the acquisition of Central Cross, 18-30 Tottenham Court Road and 1-2 Stephen Street, London W1 for GBP146 million before costs. MAIN FACTS: -Situated on a 2.1 acre (0.85 hectare) site, the 251,000 square feet (23,300 square meters) freehold property comprises 216,000 square feet (20,100 square meters) of offices, 24,000 square feet (2,200 square meters) of ground floor retail space fronting onto Tottenham Court Road and an 11,000 square feet (1,000 square meters) cinema. -The annual rental income is GBP8.1 million from 21 leases to 10 tenants with an average rent of GBP34 per square foot (GBP366 per square meter) and an average lease length of six years. -The net initial yield is 5.5%. 33% of the rental income is secured beyond 2020 whilst 38% is subject to lease expiries or breaks before December 2011. -Both the property's office and retail elements offer significant opportunities for future refurbishment and improvement. -The three principal tenants, who account for nearly 90% of the rental income, are: FremantleMedia Group, Ascent Media, and S Technologies. -The transaction involves the acquisition of the units in Merbrook Central Cross Property Unit Trust, a Jersey Property Unit Trust which holds the property. -The units will be acquired from TCR 1 Limited and TCR 2 Limited, Guernsey registered companies. -The acquisition will be financed from Derwent London's existing bank facilities. -Shares closed Tuesday at 1355.0 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; [email protected] (END) Dow Jones Newswires July 28, 2010 02:22 ET (06:22 GMT)