Derwent London has built up a one-acre island site in London’s Victoria with the acquisition of Francis House at 11 Francis Street, SW1, for £29.1m.
Together, the properties comprise the majority of an island block covering 1.2 acres.
Francis House is let to Channel Four Television on a lease which expires in February 2020. It produces a total annual income of £1.56m until February 2015, when there is a fixed rent increase to £1.66m pa, reflecting a 5.1% yield, rising to 5.4%. The majority of the space is sublet.
Derwent London said that it has achieved rents in excess of £50 per sq ft at Greencoat & Gordon House, underpinning the potential for rental growth.
John Burns, chief executive at Derwent London, said: “This acquisition increases our presence to over 570,000 sq ft in Victoria, an improving West End village which is diversifying from its traditional occupier base and attracting a wide range of creative companies. It will provide us with immediate incremental income, and consolidates our existing holdings within the same block which will increase the longer term options available to us.”