Derwent London has agreed the £131.8m sale of fashion group Burberry’s global headquarters at Horseferry House in Westminster to Indonesian developer Sinar Mas.
Horseferry House, SW1
The price is marginally below the December 2025 book value.
The 64,900 sq ft Horseferry House is fully let to Burberry on a lease running to 2043 with no breaks and fixed rental uplifts in 2033 and 2038.
Derwent London acquired the building for £34m in 2005 and completed a comprehensive refurbishment, during which the workspace was pre-let to the British fashion brand.
The sale continues the developer’s strategy to sell £1bn of assets over the next three years, which the firm last month said it was accelerating on the back of strong momentum and sustained demand for prime office space.
Outgoing chief executive Paul Williams, who is set to retire once a successor is in place, said: “We have now exchanged contracts on circa £275m of sales since the start of the year and are in discussions on a further circa £100m.”
He added: “Our disposal of Horseferry House crystallises a circa 8.4% IRR [internal rate of return] over our 21-year ownership, outperforming the MSCI Central London Office Index by circa 240 basis points annually.”
Sinar Mas previously owned nearby office building 33 Horseferry Road, which it bought for £188.6m in 2017 and sold to LTH Property Holdings in 2022 for £247.5m.
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