A rare freehold development opportunity on Lincoln’s Inn Fields, WC1, is to be put up for sale by the Royal College of Surgeons.
Knight Frank has been instructed to market the Nuffield Building on the south side of the historic square.
No guide price has been set for the 65,000 sq ft block. However, based on pricing for recent deals such as AXA’s and Morgan Capital Partners’ £29m acquisition of 182-184 High Holborn, WC1, it is expected to attract bids in excess of £50m.
The RCS currently occupies the building but is considering consolidating into the adjoining Barry Building, paving the way for a possible redevelopment.
The opportunity is expected to attract office, residential and hotel investors, given its central location and is likely to prove a bellwether for relative values between the sectors.
Indian developer Lodha secured consent for a 200-flat scheme just behind the Nuffield Building at 48 Carey Street, WC1, earlier this year. It bought the site for around £90m from WELPUT at the start of 2014.
However, the luxury London residential market has since cooled caused in part to the new stamp duty regime, which makes properties of £1m or more liable for substantially more tax.
Office rents grew by 11% during the same period, according to the IPD Levy London submarkets analysis, and they are forecast to grow further this year.
