British Land purchases London offices for revamp
British Land has announced completion of a deal to buy property in the Paddington Central area of the capital and regenerate it to deliver considerable returns over the coming years.
Purchased for £470 million from former owner Aviva Investors, the Paddington Central site will see a further investment of £180 million by British Land as the firm looks to transform the mixed-use complex into a thriving hub for businesses looking for prime office real estate in the capital.
Plans for the development include the letting of a three-building modern office cluster at 4 and 5 Kingdom Street, resulting in returns on 610,000 sq ft of grade A office space from tenants in the years to come.
In addition, the developer has achieved planning consent for the delivery of a new 355,000 sq ft office building at the site, to be finished by 2018 and this will bring its total available office space close to one million sq ft.
Full-scale construction efforts have been predicted to get underway early next year, with a number of designs by architect Allies and Morrison at an advanced stage.
Tim Roberts, head of offices at British Land, said: "Managing and developing large estates in London is what we do well.
"With the benefit of improving local infrastructure, the regeneration of Paddington as a whole, plus our ability to improve and complete the estate, I am confident we can take Paddington Central to the next level."
Chris Grigg, chief executive of the company, added the deal is the most significant acquisition for British Land this year.
The move ensures redevelopment of Paddington Central will now get underway in earnest, after previous attempts to revamp the area had been put on hold due to the onset of the global economic crisis and subsequent impact this had on the UK economy.
British Land is one of Europe's largest real estate investors, operating a portfolio of properties valued in excess of £16.4 billion.
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