Singapore-listed City Developments has bought the Ethical Property Company’s Shoreditch office block for £37.4m, paving the way for a £115m tech “megahub”.
CDL acquired the freehold for the 28,266 sq ft Development House, located on the junction of Leonard Street and Paul Street, EC2.
The sale could usher in one of the largest developments in Shoreditch, adding 90,000 sq ft of offices to the supply-strapped market. The scheme would also include retail and leisure.
Architect Waugh Thistleton’s plans could cater for the surge in occupier demand from media and tech companies.
The Ethical Property Company will enter into a short-term leaseback arrangement and use the sale money to refurbish its new Bethnal Green headquarters.
Last year CDL acquired the Stag Brewery site at Mortlake, Richmond upon Thames, to develop 850 homes. It also bought the nearby Teddington Studios.
Kwek Leng Beng, executive chairman of CDL, said: “This purchase offers CDL one of the most exciting development opportunities in the area.”
Cyril Leonard introduced the transaction and together with Dartmouth Capital Advisors advised CDL; BCM Real Estate and Somerford Investment acted for the Ethical Property Company.
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