Derwent sells Burberry HQ in £131.8m Westminster deal

A prime slice of Westminster real estate has changed hands. Derwent London has agreed o sell Horseferry House - home to Burberry’s global headquarters - to Indonesia’s Sinar Mas for £131.8 million. Here’s what you need to know.

The 164,900 sq ft building has long been synonymous with Burberry’s corporate presence in London. Originally acquired by Derwent in 2005 for £34 million, the property was repositioned through a major refurbishment before being fully let to the luxury fashion house.

The timing of the sale is notable. In late 2025, Burberry recommitted to the space, extending its lease through to 2043 with no break options and introducing fixed rental uplifts in 2033 and 2038 - locking in long-term, stable income and sharpening the asset’s appeal to global investors.

While the sale price sits just below its latest book value, the deal underscores continued international appetite for London’s best-located, income-secured offices - particularly those tied to globally recognised brands.

Paul Williams, Chief Executive of Derwent London, commented: “Our disposal of Horseferry House crystallises a circa 8.4% IRR over our 21-year ownership, outperforming the MSCI Central London Office Index by circa 240bp pa. 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, as part of our three year disposals target of £1bn.”

Sinar Mas, the buyer, is one of Indonesia’s largest and most diversified business groups, with interests spanning real estate, financial services, agribusiness, and pulp and paper. Through its property arm, the group has been steadily expanding its footprint in global gateway cities, targeting assets with stable income and long-term growth potential.

The transaction pushes Derwent further along its £1 billion disposals drive, as it continues to actively reshape its central London portfolio.

 
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