Investor pays out £146m for West End property

Derwent London has sealed its first major acquisition since the UK real estate bubble burst in 2007, after agreeing to buy a 23,300 sq m property in London's West End, for around £146m.
By The Newsroom
Published 29th Jul 2010, 13:23 BST
Updated 29th Jul 2010, 13:23 BST

The real estate investor said it had exchanged contracts to purchase The Central Cross development at 18-30 Tottenham Court Road and 1-2 Stephen Street in a plan to bulk up on discounted London properties ripe for redevelopment or rental growth.

"This acquisition provides strong income at economic rental levels, together with opportunities for active management, future refurbishment and improvement of the office space which Derwent specialises in," the company's chief executive, John Burns said in a statement.

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"We will also be looking to enhance the retail units fronting Tottenham Court Road, which will benefit substantially from nearby infrastructure improvements including Crossrail," he added.

Situated on a 2.1-acre site, the freehold property comprises 216,000 sq ft of offices, 24,000 sq ft of ground floor retail space and an 11,000 sq ft cinema.

The annual rental income is 8.1m from 21 leases to 10 tenants, with an average rent of 34 per sq ft and an average lease length of six years.

Related topics:West EndLondonCrossrail