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.
At present the building is only 93,000 square-feet of office space, but the redevelopment involves the construction of new space.
This came as British Land gained planning permission to construct a further 39,000 square-feet of space in 2009.
The final cost of the redevelopment is expected to be approximately £100million.
Once completed, the new space will contain office space as well as some retail units on the ground floor.
All of which is thought to bring substantial profits for British Land, once they start to lease parts of the premises.
Tim Roberts, British Land’s head of office, said, “This is a great opportunity for British Land to buy into one of the limited number of prime central London locations with planning consent at an early stage in the recovery cycle.”
“We are optimistic about the outlook for rental growth in the West End office market and expect to generate strong returns as we leverage our development expertise.”
McAleer & Rushe, the previous owners, have agreed to stay on as contractor for the development and will take a share in the profits once the development is complete.
British Land expects the redevelopment to commence this year, and for it to be complete in 2013.