Alchemi has bought the former Westminster Fire Station in Victoria, SW1, for a luxury central London residential development, despite fears of a market slowdown.
The planned scheme at 4 Greycoat Street has a potential GDV of up to £60m, consisting of 18 flats spread across the existing structure and a new five story building behind.
The scheme, 29,700 sq ft in total, works out at over £2,000 per sq ft.
The deal was arranged before the referendum with Middle Eastern finance, but completed after the vote, and is one of the largest to complete post 24 June, with a number of other high-profile schemes under offer falling out of bed.
While there has been much excitement about the central London residential market post-referendum, led by the value created by the pound’s devaluation, larger deals have remained sparse.
“The deal represents a very bold statement in these post-Brexit/mayoral election times,” said Richard Berridge, managing director of Blackbird RE.
“The prime central London residential sector has been showing signs of structural weakness for some time now.
“It is taking a while for buyers of expensive central London apartments to adjust to the new SDLT rules and the further 3% levy on seconds homes, which certainly holed the good ship PCL below the water line.
“How the market continues post-referendum, only time will tell.”
Alchemi have now submitted plans designed by OpenStudio Architects for the grade II listed building, which will include 4,800 sq ft of ground floor retail.
Led by Charlie Baxter, the London residential developer has considerable experience in Victoria. It bought the nearby 55 Victoria Street in 2012 from Blackrock for £35m. In 2013, it bought Great Minster House North for £97.5m, which it sold to Brockton Capital for £137m in 2015.
Dron & Wright advised London Fire Brigade.
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