The number of West End offices bought for residential conversion has skyrocketed this year.
Figures from Allsop reveal that 14 of the 39 West End assets sold during the first three months of 2012 were bought for residential redevelopment.
The number is already almost half that recorded last year, when 30 West End offices were sold for residential conversion, and eclipses the four office-to-residential sales completed in Q1 2011.
Nick Pemberton, partner in Allsop’s West End investment team, said: “Investor appetite for office-to-residential development stock is increasing as demand for flats continues in core locations, particularly from overseas.
“We are seeing developers working up plans on some large office buildings, often committing to purchasing these blocks without planning.”
During the first quarter, developer Alchemi Group named Victoria, SW1, as its key target area for converting offices to residential properties, and purchased 55 Victoria Street (pictured) for £35m. It is drawing up proposals to convert the offices into flats when the Department for Transport’s lease at the property expires in June.
A total of £880m of West End stock was traded in Q1 2012, according to Allsop’s figures.
joanna.bourke@estatesgazette.com
