There has been plenty of commentary around future office demand and whether it will look weaker following the popularity of working from home during the pandemic and numerous employers looking at more flexible working. But Derwent’s boss Paul Williams pointed to strong investment demand for central London office properties.
FTSE 250 firm Derwent has exchanged contracts to sell its 126,200 square feet freehold interest in Angel Square to property investor Tishman Speyer. The price is £86.5 million before costs.
It comprises three buildings around a central courtyard in Islington. The asset will become vacant following the sale, allowing for future refurbishment work.
Williams said: "This disposal reflects the strength of investment demand for central London office properties. Proceeds will be reinvested into our high quality development programme.”
The firm’s pipeline includes new office projects at Baker Street and the Network Building, Tottenham Court Road.
The former is due to commence in the next few months and the latter in 2022.
Bernard Penaud, head of Europe for Tishman Speyer, said: “With the current leases reaching expiry, we will use the opportunity to undertake a significant refurbishment consistent with our strategy of creating state-of-the-art, premium-quality office environments in prime locations in Europe's major cities."