The Central Cross development at Tottenham Court Road and 1-2 Stephen Street has been bought by real estate investor Derwent London for £146 million. This is its first deal since 2007 after the blow suffered by the commercial property market as a result of the economic downturn.
The extra 23,300 square metres of space has risen the firm’s holdings, in the West End districts to the north of Oxford Street and close to Fitzrovia, to 1.5 million square feet.
Chief Executive John Burns said: “This acquisition provides strong income at economic rental levels, together with opportunities for active management, future refurbishment and improvement of the office space which Derwent specialises in”.
He added: “We will also be looking to enhance the retail units fronting Tottenham Court Road, which will benefit substantially from nearby infrastructure improvements including Crossrail”.
The freehold property is made up of 216,000 square feet of offices, 24,000 square feet of retail space and an 11,000 square foot cinema. It generates a yearly rental income of £8.1 million and has ten tenants.
The average lease at the W1 office and retail space lasts for six years and the rent stands at £34 per square foot.