The Victoria office block home to collapsed shopping centre giant intu has been put up for sale, with plans already in place for a major redevelopment.
Investor Tellon Capital is seeking £87.5m for the freehold to 40 Broadway, SW1, and two adjoining office buildings, which sit on a half-acre site opposite St James’s Park station.
Planning permission is already in place to demolish the eight-storey block, as well as a smaller building behind it on Carteret Street, and replace it with 93,500 sq ft of mainly office space.
The plans, approved by Westminster City Council in March 2019, also include a roof terrace overlooking St James’s Park, Buckingham Palace and the Houses of Parliament.
Should the proposal go ahead, it would be the latest in scores of redevelopments in Victoria in recent years, following sites such as 162 Buckingham Gate, Portland House and the Zig Zag building.
However, EG understands the site is being marketed against the backdrop of a dwindling pipeline of new buildings.
Sources close to the deal also hope the timing means any prospective buyer would be able to more easily tailor the new office space to the changing needs of occupiers as the UK emerges from the coronavirus pandemic. Those are likely to include features such as more space between desks, better ventilation, and more generous amenities for workers.
In non-pandemic times, the building would still house employees of shopping centre operator intu, which fell into administration last year. But following intu’s demise and subsequent changes to the length of that lease, 40 Broadway is due to be fully vacant by January 2022.
EG has approached Tellon Capital for comment. Allsop is advising on the sale.
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