Top price achieved for office space in Victoria

As availability in the Victoria area of the West End continues to be squeezed, an offer has been made by Threadneedle Investments for the building at 1 Neathouse Place, near Victoria station. The building is currently the headquarters of the global mining company BHP Billiton, with part of its 117,000 square feet of space also dedicated to retail, currently a branch of Argos. The main tenant accounts for 94% of the income from the building. 

The offer price is said to be £100 million, some £32 million more than the building was purchased for in 2004 and more than the asking price. 

Threadneedle Investments is a UK fund manager, which will be hoping to capitalise on the increasing rents available in the vicinity, which has seen availability shrink by 46% over the last 12 months. The Neathouse Place site commands a rent of £50 per square foot, but with other rents in the area reaching £80 per square foot, it is unsurprising that the sale figure was achieved for the seller, a German real estate investor. 

The demographic of the area has been changing from government buildings and offices to prime mixed-use developments, boosted by local redevelopment and investment. One of the state bodies to vacate the area recently is the Metropolitan Police, whose iconic New Scotland Yard has been sold to Abu Dhabi investors for largely residential development, while the Old War Office at 57 Whitehall has also been sold for an undisclosed amount, after being declared surplus to MoD requirements, and is likely to be converted into a hotel and residential apartments. 

This news was brought to you by Morgan Pryce, a specialist tenant acquisition agent with offices in Oxford Circus and the City. Morgan Pryce specialises in search, negotiation and project management and works exclusively for tenants.