British Land acquires Mayfair assets for EUR 167m

UK REIT British Land has entered into a corporate agreement to purchase two buildings in Mayfair, London for £130 mln (EUR 167 mln). The acquisition is expected to complete in November 2012.

Both buildings, located at 6/12 Clarges Street and 82/84 Piccadilly overlook Green Park, are freehold and together comprise over 119,000 sq ft (11,055 m2) of existing office and retail space. 82/84 Piccadilly comprises 84,600 sq ft and is let until December 2012. Clarges House totals 34,700 sq ft of offices and is currently vacant. Adjoining the two is the Kennel Club at 1-5 Clarges Street which is freehold and owner occupied.

In a statement, British Land said it 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 sq ft net. The scheme, designed by Squire & Partners, includes 63,000 sq ft of luxury private residential units fronting Piccadilly with 7,900 sq ft of retail below, 91,000 sq ft of high quality offices in a separate block, and a new Kennel Club building. Design and planning work is already underway to improve the existing consent.

'The scale of development will create a landmark building and will further enhance British Land’s presence in the West End,' commented Tim Roberts, head of Offices at British Land. British Land’s central London development programme covers both offices and residential schemes, for a combined 2.3 million sq ft of committed developments.

The vendors were advised by CBRE and Olswang, and British Land was advised by Mayer Brown.