Heron unloads seven buildings: Derwent Valley keeps vendor as tenant in pounds 33.4m purchase
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.HERON International gave its property disposal programme a boost yesterday with the sale of seven buildings for pounds 33.4m.
The deal marks the latest stage in a spending spree by Derwent Valley Holdings, the property investor, which is part-funding the acquisition with its second cash call in nine months.
John Burns, Derwent's managing director, said: 'We believe that the conditions for property investment remain favourable.' He said that increasing Derwent's equity base would allow it to borrow further to finance more acquisitions.
One of the portfolio's four central London properties is Heron's headquarters in Marylebone Road, which the troubled property company is renting until 2010.
Heron, which completed a pounds 1.3bn refinancing six months ago, is paying its first year's rent of pounds 310,000 up-front.
Derwent played down the risk of taking on Heron as a tenant, saying that in the context of the group's pounds 8.2m rental income, it was insignificant.
Income from the seven properties amounts to pounds 3.45m a year, although lease renewals will reduce that to pounds 3.18m in September. The yield is 10.3 per cent, falling to 9.5 per cent. As well as the four London properties - a mixture of office, retail and residential space - the deal includes an industrial estate in Reading and two office buildings in Oxford and Cheadle, Manchester.
Derwent plans to raise pounds 18.6m of the price with a one-for-three rights issue at 500p a share. A one-for-one scrip issue will follow to improve the shares' marketability.
Last July Derwent raised pounds 17m through a placing and open offer, since when it has spent almost pounds 24m on property acquisitions.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments