Derwent London To Buy Major Building In Whitechapel From RBS For GBP 132 Mln

(RTTNews) - UK-based real estate investment trust Derwent London plc (DLN.L) Monday announced that it has exchanged contracts to acquire the freehold of Aldgate Union, Whitechapel High Street E1 from the Royal Bank of Scotland Plc (RBS, RBS.L) for 132 million pounds before costs.

The building will be acquired with vacant possession in December 2015, and at a price that reflects a capital value of 518 pounds per sq ft. The company said the acquisition demonstrates its commitment to London's rapidly improving Tech Belt, and its confidence in the strong levels of occupier demand.

The property sits on a one acre site and comprises a substantial eight-storey office building totalling 255,000 sq ft over ground, seven upper floors and two lower ground floors. The property is currently occupied by RBS and was comprehensively refurbished in 2008.

John Burns, Chief Executive Officer, said, "As with most of our recent purchases this property offers significant longer term regeneration opportunities and adds to our future development pipeline."

Separately, Derwent London said it has pre-let almost 70,000 sq ft on the lower floors at White Collar Factory EC1 - its innovative development overlooking Silicon roundabout in the heart of London's Tech Belt. In London, Derwent London shares were trading at 3,588 pence, up 1.36 percent.