Burberry global headquarters to change hands for 131.8 million pounds

UK commercial real estate owner Derwent London has exchanged contracts for the disposal of Horseferry House SW1 to an overseas investor. The 164,900 square foot building serves as the global headquarters for British fashion brand Burberry.

The transaction is valued at 131.8 million pounds (174.5 million dollars) before rental top-ups. The sale price is reported to be marginally below the December 2025 book value. Completion of the deal is scheduled for June 2026.

Investment and asset management

Derwent London originally acquired the Westminster property in 2005 for 34 million pounds. Following the acquisition, the Group completed a substantial refurbishment of the site. It was subsequently pre-let to Burberry.

In late 2025, the Group regeared the lease with Burberry. This agreement extended the term by five years to 2043 with no break clauses. The lease also incorporates two five-yearly fixed uplifts scheduled for 2033 and 2038.

Strategic disposal targets

Derwent London chief executive, Paul Williams, stated that the disposal crystallises an approximate 8.4 percent internal rate of return (IRR) over the 21-year ownership period. This performance outperformed the MSCI Central London Office Index by approximately 240 basis points per annum.

Williams noted that the Group has exchanged contracts on approximately 275 million pounds of sales since the start of the year. The company is currently in discussions regarding a further 100 million pounds in potential disposals. These actions are part of a three year disposal target of one billion pounds.

The Group is the largest London office-focused real estate investment trust (REIT). As of December 31, 2025, its commercial portfolio was valued at 5.1 billion pounds. Other landmark buildings in its 5.3 million square foot portfolio include 25 Baker Street W1 and the White Collar Factory EC1.