LONDON, UK: Derwent London has exchanged contracts to sell its 126,200 sq ft freehold interest in Angel Square, Islington to Tishman Speyer. The disposal price is £86.5m before costs.
Angel Square consists of three multi-let connected buildings around a central courtyard and was acquired in November 2014. Following a light touch refurbishment, the bulk of the property was let to Expedia (67,500 sq ft) and The Office Group (40,700 sq ft).
At December 2020 the total rent passing was £5.0m per annum, however leases have since expired and the property will become vacant following the sale. The disposal price, net of costs, represents a substantial premium to December 2020 book value.
Paul Williams, Chief Executive of Derwent London, said: “This disposal reflects the strength of investment demand for central London office properties. Proceeds will be reinvested into our high quality development programme. This will soon be expanded to include 19-35 Baker Street W1 and the now consented Network Building W1, which together total over 400,000 sq ft. The former is due to commence in the next few months and the latter in 2022.”
Bernard Penaud, Head of Europe for Tishman Speyer, said: “We’re delighted to have acquired Angel Square, to open a new phase of investment for us in the London market. With the current leases reaching expiry, we will use the opportunity to undertake a significant refurbishment consistent with our strategy of creating state-of-the-art, premium-quality office environments in prime locations in Europe’s major cities.”
Tishman Speyer is a leading owner, developer, operator and investment manager of first-class real estate in 29 key markets across the United States, Europe, Asia and Latin America.