Dutch developer MAB has tied up its first major City development site, reviving plans for a 300,000 sq ft (27,870 sq m) scheme.
MAB has bought 16 Coleman Street, EC2 from a private Japanese investor for £12m – a 7.25% yield.
The building forms half of a site that a series of developers have eyed for office schemes in recent years.
Pillar Property – which owns the neighbouring 35 Basinghall Street through its CLOUT partnership with Schroders – won planning permission this week for a new scheme to incorporate the combined site.
Consent had already been given for a smaller scheme at 35 Basinghall Street.
However, Pillar submitted a revised application to incorporate 16 Coleman Street.
This week’s permission for the combined site plans, drawn up by Bennetts Associates, proposes the construction of a single nine-storey building, totalling 270,000 sq ft.
However, redevelopment of 16 Coleman Street will require an arrangement with tenant Slaughter & May.
Former Development Securities head Martin Landau, who was appointed chairman of the UK branch of MAB last year, has been associated with the site before.
Two years ago DevSec – while Landau was deputy chairman – bid to buy 35 Basinghall Street.
The scheme will be MAB’s first foray into the City of London, but it has been trying to secure a site in the area for months.
It most recently failed with a bid for the former London Stock Exchange building in Old Broad Street, EC2, which Hammerson is close to securing.
DTZ advised the vendor of 16 Coleman Street.
References: EGi News 22/03/04
