Derwent London exchanges contracts to acquire the freehold interest in Blue Star House for £38.1m before costs. The 53,750 sq ft 11-storey building comprises multi-let office space, including two vacant floors, with restaurant and leisure accommodation at ground/podium level. The rent on acquisition is £0.8m, equating to a low average rent of £14.50 per sq ft on the occupied office space. The acquisition price equates to a capital value of £710 per sq ft. Vacant possession can be achieved in the next few years and there is scope to redevelop the site with a larger scheme.
Paul Williams, Chief Executive at Derwent London, commented:
"We are delighted to have acquired Blue Star House and added Brixton as a location within our portfolio. With its excellent connectivity to the West End, we see this as an exciting addition to our substantial development pipeline.”