British Land has beaten a host of Mayfair residential specialists to buy the Clarges Estate at 82-84 Piccadilly, W1.
The UK REIT has just over a week left on an exclusivity agreement to acquire the 200,000 sq ft site from the Sebba family.
It is understood to have bid around £150m for the estate, which has consent for 24 luxury flats and a 100,000 sq ft seven-storey office block. Other investors known to have looked at the site include Native Land, the Reuben Brothers, CIT and Lancer Asset Management.
The offer is significantly less than the £170m Chelsfield had agreed to pay for the Mayfair block earlier this year. That deal collapsed as complications over the development arose.
The neighbouring Kennel Club at 1-5 Clarges Street is objecting to the redevelopment of the block. Negotiations over a solution are ongoing.
One agent said: “British Land is one of the biggest property companies in the country and saw this as an opportunity buy. I do not believe there are immediate plans to begin a redevelopment, but this a huge site it can explore.”
Another added: “British Land needs to get more exposure to mixed-use development. It has a strategy to hold West End assets. Clarges Estate ticks all the boxes. And if anyone can crack the Kennel Club, British Land can.”
In its most recent set of annual results, BL pledged to significantly increase investment in its development pipeline, principally in central London.
It also outlined plans to look for more residential opportunities. During the year it committed to 70,000 sq ft of residential development, with an estimated end value of close to £100m.
CBRE is advising Sebba; Knight Frank is acting for BL.
All parties declined to comment.
