In a surprise move, Norwich Union has brought its 23,225 sq m (250,000 sq ft) development site in Mayfair at 40-50 Stratton Street and 45-50 Berkeley Street, London W1, to the market for £100m.
NU had intended to redevelop the two existing buildings on the site in a joint venture with Greycoat but has now asked Jones Lang Wootton to bring it to the investment market.
Richard Jones, fund manager at NU, told EGi: “We are genuinely considering all the options for the site from direct development to some form of joint venture to a sale.”
He stressed that Greycoat was still involved in drawing up plans for a 23,225 sq m (250,000 sq ft) office scheme and that a planning application should be expected by the end of the year.
Jones added that there had already been strong interest in the site from developers, funds and occupiers. Jones would not confirm names but the site is known to be on Arthur Andersen’s shortlist for a new headquarters in Central London.
Leases fall in by the millennium and the largest single occupier, solicitor Nabarro Nathanson, is already looking for 10,219 sq m (110,000 sq ft) of new offices in Central London.
Peter Thornton, chief executive of Greycoat, was unavailable for comment.
Jones Lang Wootton is advising Norwich Union. Weatherall, Green & Smith is advising Arthur Andersen.
EGi News 06/10/97
