Derwent London sells New River Yard for £67.5m

Derwent London has sold New River Yard, EC1, to a private property company for £67.5m. Derwent said it plans to invest the proceeds into its development pipeline. The deal consists of four office buildings at 3-4 and 5-8 Hardwick Street and 151 and 161 Rosebery Avenue, which are let to 13 tenants. The sale price for the 70,700 sq ft freehold interest is before costs and before rental top-ups. New River Yard generates a total passing rent of £3.3m pa, and there is an average of 2.6 years to lease break/expiry. The sale price, after deductions, represents a 4.5% net initial yield and a marginal discount to June 2021 book value. Derwent London boss Paul Williams said: “This sale continues our strategy of recycling mature assets while investing in developments and potential pipeline projects where we see superior returns. We currently have 708,000 sq ft of net zero carbon development under construction, including the recently commenced 19-35 Baker Street W1.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews View recent office lettings in EC1 >> View agent rankings for the City fringe >>