British Land is embarking on the joint development of a £100 mln (EUR 114 mln) office scheme on Baker Street in the West End of London. The UK REIT announced on Friday that it is acquiring a property located at 2-14 Baker Street from Northern Irish construction group McAleer & Rushe for £29 mln (EUR 26 mln).

British Land is embarking on the joint development of a £100 mln (EUR 114 mln) office scheme on Baker Street in the West End of London. The UK REIT announced on Friday that it is acquiring a property located at 2-14 Baker Street from Northern Irish construction group McAleer & Rushe for £29 mln (EUR 26 mln).

The building is situated in a prime location on the corner of Portman Square, just north of Oxford Street. The existing 8,600-m2 property was built in the 1950s and is largely vacant.

Planning consent was granted in 2009 for a new office property with retail units at ground floor level. Redevelopment is planned to start during the course of this year with completion scheduled in 2013. The total cost of development including land is expected to be around £100 mln.

British Land has entered into a joint development agreement with McAleer & Rushe. Under the terms of the agreement, British Land acts as the development manager and McAleer & Rushe is the contractor for the scheme. McAleer & Rushe will take a share in the development profits.