Derwent London has revealed that it completed the acquisition of 22 Kingsway WC2 in London’s Midtown from Harel Insurance & Finance Group and Clal Insurance Group for £59.3m (after costs). The block comprises an eight-storey freehold office building with a net internal area of 8,490 sqm. It is let to King’s College London under a lease expiring in September 2025. The average rent is GBP 353 annually, with the next rent review due in September 2015. The transaction reflects a capital value of GBP 6,964 per sqm and a purchaser’s net initial yield of 5.1%.
John Burns, Chief Executive Officer at Derwent London says the off-market purchase of this prominent block provides an attractive initial yield, with good prospects for growth on review next year. “With the continued improvement of Covent Garden and the wider Midtown area, 22 Kingsway offers regeneration opportunities in the longer term.”
