Derwent London has sold its freehold interest in 28 Dorset Square in north London to a private UK investor for £17m.
The central London property company said in a Stock Exchange announcement today that it had exchanged contracts at a sale price reflecting a net initial yield of 6.1%. This represents a 5% premium over the 31 December 2008 valuation.
Located next to Marylebone station, the four-storey office building at 26, 27 and 28 Dorset Square and 2, 4 and 6 Boston Place totals 23,530 sq ft of commercial space.
The property underwent comprehensive refurbishment in 2006, by architect John McAslan + Partners, and was let to Bacardi Global Brands on a 15-year lease, expiring in 2021, at a rent of £1.1m a year. The rent is subject to an upward only rent review in 2011 and five-yearly reviews thereafter.
John Burns, chief executive at Derwent London, said: 'This transaction represents the continuation of our selective disposals programme of mature assets in order to recycle capital within the portfolio.
'We are pleased to have secured this sale at a 5% premium to the December year-end valuation.'