10/08/2021 by Buildington
Derwent London has acquired 250 Euston Road building which totals 165,900 sq ft and sits on a 1.6 acre site.
The freehold office building is let in its entirety to University College London Hospital UCLH on a lease expiring in 2039.
The passing rent is £4.7m or just £28 per sq ft, which is subject to 2.5% fixed annual increases compounded every five years. The next uplift is due in April 2024 when there is also a tenant break with breaks every 5 years thereafter.
Derwent London saw an opportunity to create a larger scheme on this potential Life Science site. The total consideration is £189.9m inclusive of costs, and the initial yield is 2.5% reflecting the low passing rent.
Paul Williams, Chief Executive of Derwent London, said:
“These are exciting acquisitions in a strong market. We are further investing in central London’s Knowledge Quarter with potential Life Science opportunities and extending our development pipeline.”
The freehold office building is let in its entirety to University College London Hospital UCLH on a lease expiring in 2039.
The passing rent is £4.7m or just £28 per sq ft, which is subject to 2.5% fixed annual increases compounded every five years. The next uplift is due in April 2024 when there is also a tenant break with breaks every 5 years thereafter.
Derwent London saw an opportunity to create a larger scheme on this potential Life Science site. The total consideration is £189.9m inclusive of costs, and the initial yield is 2.5% reflecting the low passing rent.
Paul Williams, Chief Executive of Derwent London, said:
“These are exciting acquisitions in a strong market. We are further investing in central London’s Knowledge Quarter with potential Life Science opportunities and extending our development pipeline.”