Derwent London divests London office asset for €64m

Derwent London has announced the sale of Francis House, a 4,831 m² office building at 11 Francis Street SW1, for £55.5 mln (€64.0 mln)

Francis House

The buyer is a Local Government Pension Scheme advised by Colliers Global Investors. 
The property, fully leased to Edelman following a 2022 refurbishment, was sold at a 4.9% net initial yield, reflecting a 4.1% yield after accounting for incentives. 
The sale price is consistent with the December 2024 book value, and completion is anticipated in early Q4 2025. 
A £1.3 mln (€1.5 bn) surrender premium related to the basement space was factored into the consideration.
Paul Williams, CEO of Derwent London, said: “We are seeing improved investment liquidity across the London office market and today’s disposal highlights strengthening investor demand. With £215 mln (€248 mln) of sales completed or contracted to complete in 2025, we will reinvest the proceeds into a range of higher-returning opportunities, including our three near-term West End projects totalling 46,451 m² and potential acquisitions.”
Valued at £5.0 bn (€5.8 bn) as of 31 December 2024, Derwent London primarily central London commercial property holdings make it the largest REIT focused on London offices.