Landsec has confirmed its acquisition of 25 Lavington Street, SE1 for £87.1m from Gaterule.
It saw off competition from the likes of Delancey, Derwent and Brookfield to advance the deal.
Gaterule, the property investment business run by the Oestricher family, instructed CBRE at the beginning of October to look for circa £80m for the 1.6-acre freehold South Bank site near Blackfriars Bridge and the Tate Modern.
Consisting of two office buildings, one a former printworks, 25 Lavington Street provides 128,000 sq ft of space.
The smaller of the two buildings is occupied by serviced office provider One Avenue Group on a rent of £550,000 per year. A landlord’s break notice has been served on the tenant and vacant possession of the entire site is achievable from 27 March 2019.
Landsec already has interests on the south side of the River Thames at 105 Sumner Street, where it has planning consent for a 135,000 sq ft mixed-use scheme and Red Lion Court, for which it is aiming to submit a planning application in the current financial year.
Colette O’Shea, managing director, London portfolio at Landsec, said: “This acquisition gives us great potential in a submarket in which we have deep experience. We’re excited about the development prospects for this site due to a combination of location, flexibility and scale.”
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