Derwent London announced on Thursday the completion of its 25 Baker Street development in London's West End, securing new income and using proceeds from residential sales to reduce debt.
The real estate investment trust said the 204,000 square feet of office space and three retail units are fully pre-let, generating a combined annual headline rent of 21.6 million British Pounds.
This new income stream will make a positive contribution to 2025 earnings, according to the company.
Derwent London also exchanged contracts on 115.9 million British Pounds of private residential units associated with the development, with 94.2 million British Pounds of that amount already completed.
The company said proceeds received to date have enhanced its financial flexibility and reduced its net debt.
"Achieving completion with the offices 100% pre-let and over two-thirds of the residential element pre-sold highlights the ongoing strength of the West End market and the quality of the space we have delivered," Chief Executive Paul Williams said in a statement.
The project delivered a yield on completion of 7.5%, the company added.
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