German fund Deka Immobilien has bought the London headquarters of global communications company Publicis Group at 40 Chancery Lane, WC2, for £121.3m.
The 103,700 sq ft office and retail block is being sold by Derwent London.
The price reflects a net yield of 4.25% and the sale price is 3.8% above its June 2019 book value. Publicis Groupe has a lease until July 2035, with a break at 2033, and pays an annual rent of £5.5m.
Derwent chief executive Paul Williams said: “The disposal of 40 Chancery Lane typifies Derwent London’s strategy of recycling mature assets. The proceeds will be reinvested into our substantial development programme as well as providing more headroom for new acquisitions and future pipeline projects.”
The building was designed by Bennetts Associates and provides eight floors of offices, a 4,400 sq ft shop and a new public courtyard that brings additional daylight into the office floors. The development was completed in 2015.
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