Derwent Valley - Other - Derwent gross £15.75m from sales

Date: 13 Jun 1997

DERWENT GROSS £15.75M FROM SALES

Continuing its ongoing strategy of disposing of some of its smaller holdings, Derwent Valley Holdings plc, the specialist central London property investor has raised a further £9.75 million with the disposal of four West End properties.

A 2,601.2 sq m (28,980 sq ft) office property at 50/57 Newman Street, London Wl, acquired from the CIS in 1995 as part of a portfolio has been sold for £4 million to an overseas consortium who are planning a residential scheme. The property is let to ABTA until December 1997 at a rental of £279,000 per annum, reflecting a yield of 7.0%. Pilcher Hershman and Mchael Elliott & Partners advised Derwent, while Blenheim Bishop advised the purchasers.

6/10 Lexington Street, Soho, London Wl, has been sold by Derwent to Galveston Properties Inc. for the sum of £2.3 million. The 1,147.13 sq m (1 2,348 sq ft) office property is multi-let to TV and film companies producing a total rental income of £158,485 per annum. The transaction reflects a yield of 6.9%. Allsop & Co. represented Derwent and Miller Kitching advised Galveston.

London NWI, to private investors for £1.3 million. The property comprises 713.84 sq m (7,684 sq ft) of offices together with the ground rent of 20 maisonettes. The commercial accommodation is let to the Counsell Group at a rental of £131,300 per annum. This property, again acquired from the CIS, was originally acquired by Derwent as a long leasehold interest and the sale followed the acquisition of the freehold interest. Baker Lorenz advised the purchasers.

Additionally, DTZ Debenham Thorpe advised Derwent on the sale of the freehold interest of 60/66 Rochester Row, London SW1, a 1,726 sq m (18,585 sq ft) office property with vacant possession to Fairbriar Homes for £2.15 million Derwent obtained change of use from offices to residential prior to the sale by agreeing a planning swap with Westminster whereby the residential content was transferred from their existing planning consent for the future redevelopment of Elliot House, Bressenden Place, Victoria, SWI, 9,290 sq m (100,000 sq ft).

These sales follow on from the disposal earlier in the year of properties in Paddington Street, Wl, Islington NI, Hatton Garden ECI and Canterbury for £6.0 million. Simon Silver, a Director of Derwent, says: "With the current state of the market, it has been opportune for us to dispose of properties up to a certain value to enable us to concentrate on more substantial refurbishment projects in the portfolio".

For further information:

Liz D'Oliveira,
Redwood PR
Tel: 0171 494 0303

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