TIAA Henderson Real Estate is to sell a 50% stake in its prime Midtown office scheme at 1 New Oxford Street, WC1.
The fund manager has appointed CBRE to find a joint venture partner for the project, quoting a guide price of £55m.
The 92,000 sq ft art deco block has consent for a Orms-designed refurbishment which will increase its floorspace to 108,000 sq ft.
Henderson Global Investors bought the building, formerly known as Commonwealth House, for £35m in 2011 on behalf of its Central London Office Fund.
A source said: “The Midtown occupational story has gained such momentum over the past 18 months that any development site of scale is now commanding three times the prices they did a few years ago.”
According to Levy Real Estate, Midtown capital values grew by 17.5% in 2014, driven by rental growth of 11%.
The scheme sits adjacent to the site of the former Royal Mail Depot at 21-31 New Oxford Street, WC1, owned by Brockton Capital, which has consent for a 350,000 sq ft Allford Hall Monaghan-designed project.
Several investors have also expressed interest in bidding for Brockton’s site.
Both schemes will benefit from the arrival of Crossrail in 2018 at Tottenham Court Road, WC1.
