Brixton is being touted as the next London office hot spot with a pack of investors converging on the area.
Dorrington, which has traditionally invested in Midtown and Southwark, has bought 240-250 Ferndale Road, SW9 from BlackRock Workspace Property Trust and plans to convert the largely vacant block into a £30m, grade-A office scheme with shops and some flats.
It paid £10.7m for the 55,000 sq ft block.
The deal comes as new research from South London property agent Kalmars identified 100,000 sq ft of office requirements targeting the area, with just a “fraction” of this space available.
Dorrington director Robert Harris said: “We have ?always been an emerging ?markets investor, and we think Brixton’s time has come.
“The area has had a mixed ?history, but then so has ?Southwark, but you wouldn’t know it today. We have already spoken to a number of TMT occupiers that see Brixton as an attractive option for their businesses.”
Recent tenant activity in Brixton includes Noho occupier Jellyfish Animation signing ?for 3,673 sq ft at Brixton Square on Coldharbour Lane.
Retail, leisure and office property consultant at Kalmars, Wez Mansfield, added: “Office rents are currently £25 to £30 per sq ft, offering a major discount to other London submarkets. We have noted a large uptick in requirements.”
Houston Lawrence advised BlackRock Workspace Property Trust; Kingly Partners advised Dorrington.
joanna.bourke@estatesgazette.com
