Property group Derwent London has completed the acquisition of the long leasehold interests in two West End-based properties from PRS from Music.
Derwent paid £35.0m before costs, reflecting a capital value of £440 per sq ft.
Each of the buildings, both of which are located on Berners Street, W1, have eight floors.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
The head leases expire in 2080 and together have a fixed annual ground rent of £3,125.
John Burns, Chief Executive Officer at Derwent London, said: "These acquisitions represent excellent additions to our substantial Fitzrovia and North of Oxford Street estates where our ownership extends to 1.6m sq ft. The properties offer regeneration and redevelopment opportunities in the longer term."
PRS for Music has leased back both properties for a term of three years, subject to a tenant only break option after 18 months, at a rent of £1.4m per annum, equating to £17.60 per sq ft.
When the tenant vacates the space both buildings will be refurbished, the firm added.
The share price rose 0.5% to 2,216p by 13:08.
NR
-
What happens if you can’t pay your tax bill, and what is "Time to Pay"?Millions are due to file their tax return this Friday as the self-assessment deadline closes. Though the nightmare is not over until you pay the taxman what you owe - or face a penalty. But what happens if you can't afford to pay HMRC your tax bill, and what is "Time to Pay"?
-
What does Rachel Reeves’s plan for growth mean for UK investors?Rachel Reeves says she is going “further and faster” to kickstart the UK economy, but investors are unlikely to be persuaded
