Derwent London banks £32.6m from
Tottenham Court Road sale

Derwent London has secured £32.6 million from the sale of its West End development at 80–85 Tottenham Court Road, a move that underscores robust investor demand for smaller, value-add assets and reinforces the group’s disciplined approach to capital recycling. The buyer is a newly formed joint venture between Purestone Capital and BPS London. Here's what you need to know.

The freehold asset has changed hands at a capital value of £755 per sq ft, representing a premium to its June 2025 book value and a yield of approximately 5.2%. The acquisition is the first for the value-add platform operated by Purestone Capital and BPS London, led by Rishi Khurana and Mahir Vachani, with completion expected in June 2026.

Located in one of London’s most sought-after postcodes, the building comprises 28,300 sq ft of office accommodation spanning six floors, alongside four ground-floor retail units, bringing the total floorspace to 43,300 sq ft. The property currently generates annual income of approximately £1.7 million.

Derwent London, the capital’s largest office-focused REIT, owns a £5.2 billion portfolio as at 30 June 2025, predominantly concentrated in prime central London. The Tottenham Court Road sale highlights the depth of investor appetite for well-located, smaller-scale assets offering repositioning and income growth potential, particularly within the West End.

Paul Williams, Chief Executive of Derwent London, commented on the transaction: “Investor demand for smaller value-add assets remains strong, which supports our disciplined approach to realising value. Proceeds will be recycled into other higher returning opportunities. These include our major on-site projects at Holden House W1 and Greencoat & Gordon House SW1, where we are confident in the strong rental growth outlook.”

In this way, the sale forms part of Derwent London’s progressive strategy to optimise its portfolio and adds to the group’s recent disposals, which exceeded £200 million in 2025, reflecting sustained market demand for well-located development assets.

To stay up to date on Derwent London's activity and more portfolio acquisitions, be sure to subscribe.