More than £500m-worth of stock is for sale in Victoria, SW1, after “Black Jack” Dellal and Delancey added two more to the list of several large buildings available in the area.
Dellals Allied Commercial is believed to be negotiating a £110m deal to sell Ashdown House in Victoria Street to Motcomb Estates.
The 250,000 sq ft (22,335 sq m) building is let to the DTLR and is one of the departments biggest central London offices.
The news comes as Delancey seeks buyers for one of the Department of Trade and Industrys HQs for £178m.
Jamie Ritblats investment and development company this week instructed FPDSavills to market the 200,000 sq ft (18,580 sq m) 151 Buckingham Palace Road, SW1, for almost £80m more than it paid for the building in 1999.
The sharp increase in value is a result of Delancey regearing the DTIs lease.
The building produces £11.22m pa in rent and the lease has been extended from 2013 to 2021.
But rent reviews in the future are linked to the higher of 2.5% pa or the retail price index and, from 2007, will take place annually.
A number of other local owners are looking to sell.
House of Fraser is looking for a sale-and-leaseback deal worth £48m for its 107,000 sq ft HQ at Howick Place. Its agent, Michael Elliott, is understood to have received five bids over the asking price.
The adjacent 200,000 sq ft Southside building, owned by Equitable Life, is also for sale at around £95m. DTZ is advising Equitable.
Industry sources said other available Victoria buildings include the 200,000 sq ft John Lewis head office in Victoria Street, which is owned by Rotch and valued at £110m; and Scottish Widows £40m-plus 10-18 Victoria Street, SW1.
EGi News 27/05/02
