BNP Paribas Real Estate has entered into residential development for the first time with the purchase of the Parker Tower site near Covent Garden.
BNP PRE bought the site, which covers 52,245 sq ft at 43-49 Parker Street, WC2 from a consortium of private investors for around £50m.
The Parker Tower site contains an office building with planning permission to convert to residential. BNP Paribas Real Estate plans to build a scheme with 60 homes.
Work is expected to complete at the end of 2017.
The purchase comes shortly after BNP Paribas Real Estate’s property development business completed its first scheme at King’s Cross, which was sold to a JV comprising AXA REIM and a pension fund, and let in full to Google.
BNP PRE chief executive Thierry Laroue-Pont said: “After our first commercial scheme at King’s Cross which has been a huge success, this project will launch our residential ambitions in the UK. We are also looking at other opportunistic sites in line with this strategy to grow our development business in the UK.”
BNP Paribas Real Estate’s residential agency team has been appointed as selling co-agents for the flats.
Michael Elliott advised vendor Newmark Properties; Savills advised BNP Paribas.
