London-focused REIT Derwent has inked a deal to acquire the freehold of City Road Island EC1, the site of the Moorfields Eye Hospital and the UCL Institute of Ophthalmology, for £239 mlm (€280 mln).
The City of London site is being sold by Moorfields Eye Hospital NHS Foundation Trust and UCL, known together as the Oriel joint initiative.
The 2.5 acre (10,000 m2) site, with its 400,000 ft2 (37,160 m2) of existing buildings, is located in the so-called Tech Belt where the group has substantial holdings. The firm's appraisals suggest the site has potential to deliver a major 750,000+ ft2 campus with significant public realm and strong environmental credentials.
Derwent London said it had appointed architects AHMM alongside a full professional team and would undertake significant community engagement as part of its regeneration plans.
Paul Williams, chief executive of Derwent London, said: 'We are delighted to have secured such an important central London regeneration opportunity in the heart of the Tech Belt, where we aim to deliver the next generation of distinctive ‘long-life, loose-fit, low carbon’ commercial space.'
Martin Kuper, chief executive of Moorfields Eye Hospital NHS Foundation Trust said: 'This is an important step forward for our plans for Oriel, a new eye care, research and education centre.
'The sale of our City Road Island, which is conditional on Treasury approval of Oriel, is a key element of our funding strategy.
'All proceeds will be reinvested in the new centre to secure the long-term future of world-leading eye care, research and education in a way that represents value for money and benefits our patients. We will continue to maintain our strong links with Islington Council as plans for City Road Island progress.'
Professor Alan Thompson, dean of the UCL Faculty of Brain Sciences, said: 'This is a significant step towards realising the Oriel joint initiative. Oriel will bring together UCL’s formidable research base with Moorfields’ world-class healthcare delivery in one integrated centre of research, education and care.'
The deal is subject to receipt of final Treasury approval, which is expected in H2 2022. Completion is also conditional on delivery by Oriel of the new eye hospital at St Pancras and subsequent vacant possession of City Road Island which is anticipated in early 2027.
