Transport for London has bought the offices above Covent Garden Underground station to unlock a refurbishment opportunity.
TfL paid Sunnyday Capital around £10m for the leasehold on the 11,754 sq ft offices at 40 Long Acre, WC2.
It already owns the freehold.
The space is let to PR firm Fleishman Hillard until June 2015.
Graeme Craig, director of commercial development at TfL, said: “Acquiring the long lease to our site above Covent Garden Tube station is part of our new approach of investing in our properties to generate substantial long-term income that we can reinvest back into the transport network. Property is a key part of this strategy and we are actively exploring other opportunities to develop and expand our property portfolio.”
The purchase is part of TfL’s plans to make better use of its 5,700-acre estate and secure £3.5bn of property income over the next 10 years. Lambert Smith Hampton advised Sunnydale; JLL represented TfL.
joanna.bourke@estatesgazette.com
