Lease restructuring at Morelands
Published: 16 March, 2011
The Fishmongers’ Company, one of the Twelve Great Livery Companies of the City of London, and Derwent London have completed a restructuring of the headlease at Morelands Building, an 80,000 sq ft office and retail complex on Old Street, London, EC1.
Derwent London has surrendered its current 45 year interest and taken a new lease of 125 years. Derwent London will pay the Fishmongers Company a premium of £5.8m for the new headlease, which will remain at a 10 per cent rental gearing.
Stuart Key, asset manager at Derwent London, said: “The Morelands Building is part of Derwent London’s DNA. Agreeing this restructure will enable us to invest further in the building with a new 8,500 sq ft rooftop extension, thus further enhancing the excellent returns received to date.”
Nigel Cox, clerk at the Fishmongers’ Company, added: “This complex lease restructure forms part of the wider strategy for our investment property portfolio, enabling the Company to release capital to reinvest, while at the same time improving income and future growth prospects.”
Cluttons advised the Fishmongers’ Company. Derwent London was unrepresented.
