The new owners of BT’s former Croydon HQ plan to turn the block into a £45m grade-A office development.
CarVal Investors and Canmoor, which this week completed the acquisition of Prospect First from CBRE Investors for around £10m, said they would start work on transforming the vacant 180,000 sq ft block next to West Croydon railway station imminently.
The 10-storey south London building has been vacant since 2008. CBREI had struggled to attract tenants. It was seeking £28 per sq ft.
However, the new owners are confident a refurbishment of the scheme will capture occupiers.
Robert Balick, senior managing director and Europe real estate lead at CarVal, said: “We believe that there is significant pent-up demand from existing occupiers in Croydon who have been starved of high-quality options.
“This property will offer a grade A office space at a price comparable to the second-hand space they already occupy. In addition, we believe the forthcoming improvements to the town centre and both West and East Croydon stations will make this a compelling option.”
Tom White, investment director at Canmoor, added: “This space is just 20 minutes away from central London, and the rent will be less than half the price firms would pay in the West End.”
Savills has been appointed as letting agent on the building and advised CBREI on the sale. Tudor Toone acted for Canmoor/CarVal.
joanna.bourke@estatesgazette.com
