Derwent London has exchanged contracts to sell its 126,200 sq ft freehold interest in Angel Square to Tishman Speyer for £86.5m before costs.

Angel Square comprises three multi-let connected buildings around a central courtyard and was acquired by Derwent London in November 2014.

After light refurbishment, 67,500 sq ft was let to Expedia and 40,700 sq ft The Office Group. The property will become vacant following the sale.

Paul Williams, Chief Executive of Derwent London, commented: “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, added: "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."

Law firm Simmons & Simmons advised Tishman Speyer on the acquisition of Angel Square.