Grosvenor has sold one of its historic London office buildings on a 125-year lease to Shaftesbury Asset Management Group.

European real estate investment manager Shaftesbury bought the leasehold on 20 Grosvenor Street for £96m (€121m) on behalf of an unnamed client.

The centuries-old property company will retain the building’s freehold as part of its 300 acre London estate in Mayfair and Belgravia.

Grosvenor intends to reinvest the proceeds into its £1bn London estate development programme.

The 39,681sqft building in Mayfair was redeveloped last year and pre-let to KPMG in 2014 on a 15-year lease. 

The development amalgamated 18 and 20 Grosvenor Street, originall built in 1725, and now includes two retail units – The Refinery barber and spa – and a café.

Craig McWilliam, executive director of the London estate at Grosvenor Britain & Ireland, said: “The proceeds from 20 Grosvenor Street will help us continue to invest in our London estate, ensuring it both thrives and flourishes as a place to live, work and visit in the heart of London’s West End.”