Derwent purchases two London properties

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.

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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