A development site in Covent Garden, WC2, is to hit the market after the summer with a price tag of between £60m and £70m.
According to Radius Data Exchange, the property is managed by Savills Investment Management on behalf of the long leasehold owner the Diageo Pension Fund.
The freeholder is the Mercer’s Company, the premier livery company of the City of London.
It is understood that Savills has been appointed to sell the long leasehold for the site.
The vacant block, which is bounded by Drury Lane, Dryden Street, Arne Street and Shelton Street, has planning approval to combine the existing four buildings on the site to create a circa 90,000 sq ft mixed-use scheme.
Behind a retained facade, approximately 70,000 sq ft of office space and 20,000 sq ft of retail is potentially deliverable. The scheme has been designed by architect Barr Gazetas.
Development and value-add property has attracted a wave of investment over the past year.
Most recently, German investor Art-Invest Real Estate has entered the development market with the £30m purchase of a 0.4-acre site in Fitzrovia, W1, from Starwood Capital, while the Crown Estate has confirmed it has brought in Stanhope to revamp the New Zealand embassy’s home in St James’s.
Meanwhile, in the City, M&G is also understood to be in talks to fund Nuveen’s £400m plans for 40 Leadenhall Street, Orion is understood to be acquiring BT’s current home at 81 Newgate Street and, on the South Bank, Lendlease is understood to be under offer on ITV’s former base.
Earlier this year, Savills acted on behalf of Guy’s and St Thomas’ Charity to find a development partner to develop a 5.5-acre site near Waterloo.
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