Derwent London seals £110.5m
Fitzrovia deal with Lone Star

Against a backdrop of rising market activity, 90 Whitfield Street has changed hands, with Lone Star Real Estate taking the reins. Derwent London has sold the Fitzrovia freehold for £110.5m, a calculated rotation of capital aligned with their broader portfolio strategy.

The 107,000 sq ft property carries a capital value of circa £1,100 per sq ft and a 5% net initial yield, perfectly in step with a wider strategic reset. Already 88% occupied and generating £5.9m in recurring revenue, it is a stable, income-producing asset, ready to embark on Lone Star’s next chapter of repositioning.

Buoyed by strong 2025 momentum, Derwent London is pressing ahead with its on-going disposal strategy, aimed at recycling £1bn of capital over the next three years. With £616.1m of disposals completed, £33m exchanged this year, and a further £240m under offer, capital is being rotated from mature assets to higher-return projects, acquisitions and selective share buybacks.

It proved a fruitful year for the landlord, £11.3m of new lettings across 233,400 sq ft were sealed at an average 10% above estimated rental value. Meanwhile, £58.9m of asset management activity lifted rents by 6.4%, reaffirming the firm’s focus on adding value. Early 2026 has extended this streak of favourable returns. £1.5m of new leases have been completed, with £14.4m under offer across all office space at Derwent London’s Network development in Fitzrovia.

Out of the targeted £1bn, around £500m of “the proceeds have been earmarked for reinvestment into higher returning opportunities:" says outgoing Chief Executive Paul Williams. This includes the planned £239m acquisition of Old Street Quarter in late 2027, with the remaining circa £250m directed towards major development projects, where Derwent London “forecasts attractive IRRs, as well as other alternative accretive opportunities.”

With 90 Whitfield Street now under its wing, Lone Star has a clear opportunity to sharpen its rental tone and elevate the building’s standing among institutional investors. “We have strong conviction in the central London office market and continue to believe that, with the right asset management strategy, a well-positioned West End property such as 90 Whitfield Street provides meaningful embedded upside,” says Jérôme Foulon, Global Head of Commercial Real Estate at Lone Star.

Jeremie Goldsztain, Senior Managing Director and Head of Europe Real Estate at Lone Star, adds: “This is a high-quality asset with strong underlying fundamentals given its Fitzrovia location and amenities. We believe that there are significant opportunities to further enhance the rental tone and institutional desirability by deploying further capital into refurbishment and sustainability upgrades.”

Amid Fitzrovia’s tight market, the 90 Whitfield Street deal is a reminder of the enduring appeal for prime office stock and the agility of London’s leading landlords. As Derwent London turns the page on its capital strategy, Lone Star begins to write the building’s next chapter.

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