Derwent London (DLN) continues to expand its portfolio with another acquisition on the fringe of central London's vibrant office market. Contracts have been exchanged for the £75m purchase of Angel Square in Islington, right in the middle of London's expanding tech belt, for a net initial yield of 3.05 per cent.
IC TIP:
Buy
at
2,983p
The site comprises three multi-let connected buildings around a central courtyard, and totals 128,000 sq ft of offices above Angel underground station. The passing rent is £2.4m a year, and around 10 per cent of the site is vacant. Crucially, a majority of the leases expire in March next year, which presents an ideal opportunity to review the current rental rates which average £21.68 per sq ft.
