Derwent London has exchanged contracts to acquire the freehold interest in Blue Star House, 234-244 Stockwell Road, Brixton SW9 for €45.3m (£38.1m) before costs. The 53,750ft² eleven-storey building comprises multi-let office space, including two vacant floors, with restaurant and leisure accommodation at ground/podium level. The rent on acquisition is €0.95m (£0.8m), equating to a low average rent of €17.23 (£14.50) per ft² on the occupied office space. The acquisition price equates to a capital value of €843.5 (£710) per ft²t.
The property, which sits on a 0.7 acre site that includes a surface car park, is located immediately opposite the Brixton O2 Academy. Brixton underground and overground stations are only a few minutes’ walk away with travel times to Victoria and Oxford Circus of just 7 and 11 minutes respectively. Vacant possession can be achieved in the next few years and there is scope to redevelop the site with a significantly larger scheme.
Paul Williams, Chief Executive at Derwent London, said: "We are delighted to have acquired Blue Star House and added Brixton as a location within our portfolio. With its excellent connectivity to the West End, we see this as an exciting addition to our substantial development pipeline.”