Derwent London throws £240m at Moorfields healthcare site
Derwent London has thrown nearly £240m towards buying a hospital and research centre site, as the capital’s healthcare and pharmaceutical real estate space catches the eyes of investors.
The commercial developer has bought the City Road Island site, the location of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology, after the pandemic highlighted the value in such assets.
Shares jumped 2.35 per cent to 2,968.00p per share, with chief executive Paul Williams assuring that London has kept its sparkle despite wider global pressures.
The deal is still subject to approval by the Treasury, which is expected to arrive in the second half of this year.
The acquisition also hangs on the completion of a new eye hospital at St Pancras by post-grad medical recruiter Oriel and the vacant possession of City Road Island which is anticipated in early 2027, Derwent said in a statement today.
In March, the Canary Wharf Group and Kadans Science Partner announced a joint venture to develop a 750,000 square foot life-science focussed hub, which cost several hundred million, City PM understands.
“London is busy again and maintains its global appeal in an uncertain macro environment,” said Williams. “The flight to quality continues, our portfolio is well positioned and we are seeing a high level of enquiries and viewings. As a result, we have committed to our next major office development at Network Building.”
Alongside its most recent investment, Derwent has forked out around £58.3m on the takeover of 230 Blackfriars Road, what it calls a “future super-site”.