Derwent London has purchased the 7-year headlease interest in Bush House, South West Wing WC2 for £13.5m.
The group already owns the freehold of this 103,700 sq ft office building facing the Strand. It is being acquired with vacant possession.
Combining this purchase and the December 2020 valuation of the group’s freehold interest equates to £51.8m or c.£500 per sq ft, said Derwent London.
Derwent London has appointed architects Stiff & Trevillion on the refurbishment and extension of the existing building which, subject to planning, could increase the lettable area to c.130,000 sq ft with a possible start in 2022.
“This acquisition accelerates our refurbishment ambitions for this exciting site as well as creating immediate marriage value for the Group. We intend to restore our part of this London landmark to the prominence it deserves, ensuring the most modern, adaptable and sustainable design-led offices,” said Paul Williams, Chief Executive of Derwent London.