Derwent London owns, redevelops and lets office buildings in central London, mainly in the West End and the areas next to the City.
What you get
Equiniti (EQ), Derwent London’s registrar, lists the company for EQ Boost. If your holding qualifies, you can spend your dividends on retailer e-vouchers worth more than you pay; the extra value varies by retailer.
What it takes
The published terms do not state a minimum shareholding.
You spend your own dividend money. Choosing EQ Boost replaces the dividend instruction Equiniti holds for that holding, including any dividend reinvestment or scrip instruction. The whole dividend goes to EQ Boost, and you cannot top up the account with other money. Derwent London’s annual report distinguishes property income distributions from ordinary dividends. EQ’s directory does not say which payments EQ Boost accepts. Ask Equiniti about the payment you want to redirect.
Before buyingA perk is a minor benefit of owning a share, not a reason to buy one. Share prices fall as well as rise, and dealing costs, spreads and tax can exceed a perk’s value. Read about the risks.
Holding through a broker
EQ Boost does not accept shares a broker holds for you in its nominee account. It can accept company-sponsored nominee holdings, so ask Equiniti whether yours qualifies.
Other conditions
- Age and residency
- You must be over 18. EQ’s terms appear to limit the service to UK residents; if you live elsewhere, ask Equiniti before you apply.
- Excluded holders
- Corporate shareholders; executors and administrators acting for deceased shareholders
- Joint holdings
- The account opens in the first-named holder’s name. They must have permission to create it, and withdrawals go to a bank account in their name.
How to claim
You make the election in Shareview Portfolio, Equiniti’s online shareholder account. EQ Boost then asks for your date of birth and an email address that no other EQ Boost account uses.
- 1. Check the election for your Derwent London holdingRegister for Shareview Portfolio if needed, then check the dividend election for this holding. If EQ Boost is available, choose it and follow the activation email. Each holding needs its own election. Ask Equiniti if the option or holding does not appear.
- 2. Buy vouchers when your dividend arrivesSign in to EQ Boost, compare the current retailer offers and read their terms.
Dates
The published terms do not say how long you must hold the shares.
- Qualifying date
- Check the record date in Derwent London’s announcement for the dividend you want to redirect.
- Claim deadline
- Choose EQ Boost at least 15 working days before the dividend payment date, unless another deadline is stated. A late instruction takes effect for a later dividend.
- Expiry
- Each retailer sets its voucher expiry and spending rules.
Practical notes
Voucher and account risks
Vouchers are in sterling. If a retailer goes out of business, you could lose the value of its unspent vouchers. EQ Boost is not regulated by the Financial Conduct Authority (FCA), and money in the account has no Financial Services Compensation Scheme protection. If Equiniti Financial Services Limited holds your shares, the dividend loses FCA client-money protection when it moves to EQ Boost.
Changing back to cash
You can withdraw unspent money to a UK bank account in the account holder’s name. To stop future dividends going to EQ Boost, change the election by the same deadline shown above. A late change may send one more dividend to EQ Boost.
Company story
A railway company in Yorkshire
John Burns began Derwent’s property business in 1984 using the Derwent Valley Light Railway Company as a shell company. The railway company was worth £1.5 million; the Telegraph reported that it owned five disused stations. The listed plc was a new company, incorporated in May 1984 and renamed Derwent Valley Holdings that June. The railway itself opened in 1913 near York and lost its passenger service in 1926 as buses took its customers.
Two stepbrothers and old buildings
Burns ran the business with his stepbrother Simon Silver. “My father married his mother and vice versa,” Burns told the Telegraph in 2007. The pair targeted neglected light-industrial buildings, and Silver worked with rising architects to refurbish them. Their Angel Building reached the 2011 Stirling Prize shortlist after a refurbishment that RIBA described as the transformation of an unremarkable 1980s office block.
The merger that changed the name
The Times reported in November 2006 that Derwent had interrupted merger talks between Great Portland Estates and London Merchant Securities to agree its own deal with LMS. LMS chief executive Robbie Rayne told the paper that Derwent offered better terms and a better cultural fit. The 2007 merger doubled the business’s size and gave it the name Derwent London.
Sources: The Daily Telegraph, 2007; Evening Standard, 2012 ; The Times, 2006; RIBA, 2011 Stirling Prize shortlist ; Companies House, Derwent London