2-14 Baker Street has been bought for £29million by British Land, as part of £100million redevelopment plan.
British Land has acquired a prime office location in London’s West End, in order to take advantage of the increased demand for office space.
The property was sold, in an opportunistic deal, by Irish developer McAleer & Rushe.
By securing a £43 million investment from Brookefield Properties, Great Portland Estates are now in a comfortable position to go ahead with the construction of new London-based offices.
Brookfield Properties, which already own 22% of Canary Wharf, now have a 50% stake in the development at Bishopsgate.
Analysts, at JP Morgan Financial Services, have said that the development could cost up to £560 million and that, “The project was too big for Great Portland to comfortably do alone, in our view.”
As a result, without this financial backing the development may have been put on hold.