Derwent London has acquired Blue Star House on Stockwell Road in Brixton, London SW9, from a private client of Montagu Evans and Bray Fox Smith for £38.1m.
The 53,750 sq ft (4,993 sq m), eleven-storey building comprises multi-let office space with a restaurant and leisure at ground/podium level. It provides an annual rental income of £0.8m per annum, equating to £14.50 per sq ft on the occupied office space. Vacant possession of the building can be achieved in the next few years.
The building sits on a 0.7 acre site immediately opposite the Brixton O2 Academy and close to Brixton station, which has both overground and underground connections and travel times to Victoria and Oxford Circus of just 7 and 11 minutes respectively.
Paul Williams, Chief Executive at Derwent London, said:
“We are delighted to have acquired Blue Star House and added Brixton as a location within our portfolio. With its excellent connectivity to the West End, we see this as an exciting addition to our substantial development pipeline.”
Brett Artus, asset manager for the private vendor said,
“With our professional team at Montagu Evans and Bray Fox Smith, we have worked hard to demonstrate the considerable potential of this site in what is a very exciting part of London right now. We are delighted to have agreed a deal with Derwent London who we have no doubt will make the most of this significant opportunity and create something special in central Brixton.”
Simon Rogers, Partner at Montagu Evans, said:
“This is a site with great potential. Over the last few years we have provided development consultancy and planning advice to our client and worked up a concept scheme that highlights the potential for adding significant value while respecting its location and surrounding area. With employment uses encouraged by LB Lambeth in this location, Derwent London taking the opportunity forward will be a major catalyst for both the Brixton office market and its wider commercial centre.”
Rob Skioldebrand, Director at Bray Fox Smith, said:
“After many years of private ownership, our client is delighted with the outcome of this high profile disposal. We all believe Derwent London represents the perfect buyer for this rare and exciting opportunity.’’
BNP Paribas Real Estate advised Derwent London.