Derwent London has exchanged contracts to acquire two properties in London’s Knowledge Quarter. The largest property being acquired is 250 Euston Road NW1 for a total consideration (inclusive of costs) of £189.9 million, by way of purchase of units in a Jersey Property Unit Trust which owns the freehold. The property is let in its entirety to University College London Hospital. The second property acquisition is of the freehold interest in 171-174 Tottenham Court Road W1 for total consideration (inclusive of costs) of £24.7 million. Both assets have longer term development potential.
Derwent London has also signed a detailed memorandum of understanding with Lazari Investments to establish a new 50:50 joint venture which is expected to acquire three leasehold properties from Lazari Investments for initial consideration of £64.4 million (inclusive of costs): 38-52, 54-60 and 66 Baker Street W1. Together with a fourth property owned by the freeholder, The Portman Estate, these buildings form a 1.0 acre island site capable of significant redevelopment. Subject to receiving planning on the larger scheme and a regear of the headlease, Derwent London will pay an additional £7.25 million of deferred consideration. There is the potential to obtain vacant possession at the end of 2024 which gives the joint venture an opportunity to commence on site just before completion of Derwent London’s 19-35 Baker Street project opposite.
Slaughter and May’s team included Jane Edwarde (Picture), Partner, Simon Bartle, Senior Counsel, Mark Gulliford, Associate, Luther Goh-Mah, Associate, Venetia Speke, Associate, Emily Boseley, Associate, Eloise James, Trainee, Natalie Cook, Partner, Dominic Brown, Associate, Zahida Manji, Associate, William Watson, Partner and Ed Milliner, Senior Counsel.
Involved fees earner: Simon Bartle – Slaughter and May; Emily Boseley – Slaughter and May; Dominic Brown – Slaughter and May; Natalie Cook – Slaughter and May; Jane Edwarde – Slaughter and May; Luther Goh-Mah – Slaughter and May; Mark Gulliford – Slaughter and May; Zahida Manji – Slaughter and May; Ed Milliner – Slaughter and May; Venetia Speke – Slaughter and May; William Watson – Slaughter and May;
Law Firms: Slaughter and May;
Clients: Derwent London;