Derwent London yesterday agreed a property swap with LaSalle Investment Management to acquire the leasehold on a property in Farringdon and dispose of its stakes in three other properties.
As part of the deal Derwent will acquire a 175-year leasehold on 20 Farringdon Road.
In exchange Derwent will hand the 22 Kingsway property in central London, the Mark Square House property in the City of London, and its 50 per cent stake in 9 Prescot Street and 16 Prescot Street, to LaSalle.
Derwent will receive the balance of £27.3m in cash before costs as part of the exchange.
“We are pleased to have secured a major potential project adjacent to the site of Farringdon Crossrail station in the heart of Clerkenwell, an area where we already have substantial interests,” said Derwent London’s chief executive John Burns.
20 Farringdon Road has a passing rent of £3.6m a year and is adjacent to the site of the new Farringdon Crossrail station and opposite 19 Charterhouse Street, which Derwent London acquired in November 2013.
“The assets that we have acquired offer good rental growth prospects off low passing rents,and in the longer term have significant asset management and redevelopment potential,” said LaSalle investment chief Julian Agnew.