Acquisition

Derwent Valley Holdings PLC
19 September 2000

 

DERWENT VALLEY HOLDINGS PLC 
 
£25 million Central London acquisition 
 
Derwent Valley Holdings plc has exchanged contracts to purchase Iron Trades
House, 21-24 Grosvenor Place and 1 Chester Street, SW1, for a consideration
of £25 million plus costs, to be financed through bank facilities. The
property is held on a lease expiring in May 2152 at a fixed ground rent of £1
per annum. This 5,663 square metres (60,935 sq ft) building, which is on 7
floors with basement car parking, is let to the Government of the French
Republic, Merrill Lynch Europe plc, The Royal Bank of Scotland and, the
vendor, Iron Trades Insurance Company Limited. The leases have varying
expiries and tenant breaks between 2000 and 2009. The vendor, who occupies
2,671 square metres (28,745 sq ft), will vacate its space in December 2000.
The current income of £1.46 million will, therefore, reduce by £0.52 million
to £0.94 million. Derwent intends to immediately refurbish this area. 
 
John Burns, Managing Director, commented: 'This acquisition, which brings the
total so far this year to £93.5 million, continues our strategy of purchasing
multi-tenanted Central London properties where we can enhance value through
active management and refurbishment. This building is likely to follow the
theme of our successful refurbishment of 4 Grosvenor Place although, as the
site is under-utilised, we will be looking to create additional space, and
investigate the prospects of future redevelopment. There is a strong demand
for office accommodation in this area and the existing space, when redesigned
and refurbished, has the scope to provide top grade offices.' 
 
For further information contact: 
 
John Burns, Managing Director 020 7659 3000 
Derwent Valley Holdings plc