The British commercial property owner Derwent London is selling the Horseferry House SW1 property to foreign investors. The 15,320 square meter building currently serves as the global headquarters of the British fashion house Burberry.
The transaction is valued at 131.8 million British pounds (151 million EURo) before rental increases. The sale price is reportedly slightly lower than the December 2025 book value. The deal is expected to close in June 2026.
Derwent London originally acquired the Westminster property in 2005 for £34 million. After the takeover, the group carried out a comprehensive renovation of the property. It was then pre-leased to Burberry. At the end of 2025, the group extended the lease with Burberry. This agreement extended the term by five years until 2043 without termination clauses. The lease also includes two five-year fixed increases for 2033 and 2038.
Paul Williams, chief executive officer (CEO) of Derwent London, said the sale crystallized an internal rate of return of approximately 8.4 percent over the 21-year ownership period. This performance outperformed the MSCI Central London Office Index by approximately 240 basis points per year. Williams noted that the group has exchanged contracts for sales worth approximately 275 million pounds since the start of the year. The company is currently in discussions for an additional £100 million in potential sales. These measures are part of a three-year sales target of one billion British pounds.
The group is the largest real estate investment trust focused on London office properties. As of December 31, 2025, its commercial portfolio was valued at 5.1 billion British pounds. Other landmark buildings in their 492,386 square meter portfolio include 25 Baker Street W1 and the White Collar Factory EC1.
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