Derwent London plc (LSE:DLN) has agreed the disposal of its freehold asset at 80–85 Tottenham Court Road, W1, for £32.6 million, exceeding its June 2025 book value. The price equates to around £755 per square foot, with completion scheduled for June 2026.
The 43,300 sq ft mixed-use building includes 28,300 sq ft of office accommodation arranged over six floors, alongside four ground-floor retail units that together generate £1.7 million of annual income. The buyer is a newly formed value-add joint venture between Purestone Capital and BPS London. Chief executive Paul Williams commented that the transaction highlights continued investor demand for smaller value-add opportunities and demonstrates the group’s disciplined approach to capital recycling.
Sale proceeds are expected to be redeployed into higher-return opportunities, including major development schemes at Holden House in W1 and Greencoat & Gordon House in SW1. These investments align with Derwent London’s strategy of driving rental growth across prime central London locations. While the company’s share price technicals remain weak, its strong balance sheet, supportive valuation, and active portfolio management underpin a cautiously positive outlook.
More about Derwent London plc REIT
Derwent London plc is the largest London-focused office REIT, with a predominantly central London portfolio valued at £5.2 billion as of 30 June 2025. The group specialises in acquiring off-market assets in West End and City Borders locations and creating value through redevelopment, refurbishment, asset management, and capital recycling. Known for design-led regeneration projects such as 25 Baker Street and 1 Soho Place, Derwent London operates with modest leverage, targets net zero carbon status by 2030, and supports local communities through its long-established Central London Community Fund.
Leave a Reply