British Land is lining itself up to buy into its second West End development site this year.
The REIT is the frontrunner to team up with the Portman Estate to bring forward its scheme at Marble Arch House, W1.
In May, Viscount Portman’s property company appointed CB Richard Ellis to sell the site, which has consent for a £30m, 100,000 sq ft, mixed-use scheme comprising 60,000 sq ft of offices, 15,000 sq ft of shops, a 6,000 sq ft restaurant and 10 flats.
Other parties that bid for the development opportunity included Jamie Ritblat’s Delancey. The deal is understood to involve the selected co-investor putting around £18m of equity into the Bennetts Associates-designed project.
After it is built, Portman will grant two 125-year leases, splitting the offices that will replace Marble Arch House from the residential-led reconfiguration of 62-64 Seymour Street.
The landed estate will also retain 10% of the rental income from the development, which is earmarked for completion in 2013, and control of the restaurant.
The project is located on a site close to BL’s HQ at York House, which the REIT developed after buying the long leasehold to the £25m York Building from Portman in 1994.
Marble Arch House is also close to the site of a proposed £100m scheme at 2-14 Baker Street, which BL bought earlier this year from Irish developer McAleer & Rushe.
It plans to start work on the Baker Street project, which has consent for 139,000 sq ft of offices and shops, before the end of the year.
Completion is scheduled for 2013.
bridget.oconnell@estatesgazette.com
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