Derwent London has agreed to acquire Blue Star House, an office property at 234-244 Stockwell Road, in Brixton SW9 for £38.1m before costs.
The 53,750 sq ft elevenstorey building comprises multi-let office space, including two vacant floors, with restaurant and leisure accommodation at ground/podium level. The rent on acquisition is £0.8m, equating to a low average rent of £14.50 per sq ft on the occupied office space. The acquisition price equates to a capital value of £710 per sq ft.
The office property, which sits on a 0.7 acre site that includes a surface car park, is located immediately opposite the Brixton O2 Academy. Brixton underground and overground stations are only a few minutes’ walk away with travel times to Victoria and Oxford Circus of just 7 and 11 minutes respectively.
”Vacant possession can be achieved in the next few years and there is scope to redevelop the site with a significantly larger scheme, said in a statement.
“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,” said Paul Williams, Chief Executive at Derwent London.