British Land has entered into a corporate agreement to purchase Clarges House, 6/12 Clarges Street and 82/84 Piccadilly in Mayfair based on a property price of £129.6 million (approx. 165.4 million).
British Land intends to redevelop the entire site to create a landmark mixed-use scheme.
The site is located on Piccadilly overlooking Green Park, and is close to the Ritz and Bond Street. The acquisition is expected to complete in November 2012.
Both buildings are freehold and together comprise over 119,000 ft² (approx. 11,055 m²) of existing office and retail space. 82/84 Piccadilly comprises approximately 84,600 ft² (approx. 7,859 m²) and is let until December 2012.
Clarges House totals 34,700 ft² (approx. 3,223 m²) of offices and is currently vacant. Adjoining the two is the Kennel Club at 1-5 Clarges Street which is freehold and owner occupied.
British Land intends to redevelop the entire site to create a landmark mixed-use scheme. Planning consent was granted in April 2011 for redevelopment of the site to comprise 191,000 ft² (approx. 17,743 m²) net.
The scheme, designed by Squire & Partners, includes 63,000 ft² (approx. 5,852 m²) of luxury private residential units fronting Piccadilly with 7,900 ft² (approx. 733,91 m²)of retail below, 91,000 ft² (approx. 8,453 m²) of high quality offices in a separate block, and a new Kennel Club build g. Design and planning work is already underway to improve the existing consent.
Tim Roberts, Head of Offices at British Land, said "I am excited by this unique opportunity to buy nearly an acre of land in Mayfair, where we can leverage our financial and development expertise to add value. The scale of development will create a landmark building and will further enhance British Land's presence in the West End."
On completion, the acquisition of the Clarges Estate will add further to British Land's central London development program.
Covering both offices and residential schemes, our 2.3 million ft² (approx. 213,670 m²) of committed developments includes: a new 700,000 ft² building for UBS at 5 Broadgate; The Leadenhall Building, a 610,000 ft² (approx. 213,670 m²) tower, in London's insurance district; and a 500,000 ft² (approx. 46,450 m²) mixed use office and residential scheme at our Regent's Place estate in the West End along with a number of stand-alone residential developments.
Since the beginning of 2009, we have completed 143,000 ft² (approx. 13,284 m²) of residential developments in London, with a further 200,000 ft² (approx. 18,580 m²) due to be completed by the end of 2013. The acquisition of Clarges House will add to our prospective residential pipeline.
The vendors were advised by CBRE and Olswang, and British Land was advised by Mayer Brown.
Source: British Land