Dorfman buys Soho Place for £40m

Travelex founder Sir Lloyd Dorfman has exchanged contracts to buy 2 and 4 Soho Place, W1, from Derwent London. He is paying £40.5m for the 150-year leasehold interest for the building, which comprises 18,400 sq ft of offices located on the sixth to eighth floors and a theatre, which is prelet on a 125-year lease to Nica Burns of Nimax Theatres. It is part of Derwent’s wider AHMM-designed Soho Place development due to complete in 2022 over Tottenham Court Road station. Overall, the scheme will provide 285,000 sq ft across two buildings, with 192,000 sq ft of office space and 36,000 sq ft of retail space at 1 Soho Place, which is already 81% prelet. The disposal price equates to a capital value of £2,200 per sq ft on the offices and is in excess of the expected end value. Payment is due upon practical completion of the project. Dorfman said: “We were attracted to this particular space because of the superb location next to a strategic Crossrail station, the quality of the buildings and our firm belief in the regeneration of this area, which has an exciting future. The inclusion of the theatre… was an additional attractive feature. Despite these challenging times, I have great faith in the future of the office market of central London.” Paul Williams, chief executive of Derwent London, added: “The disposal means that we have either prelet or presold virtually all the office space at Soho Place more than 18 months ahead of completion. “The two buildings’ adaptability and resilience, together with the quality of the occupiers, will ensure that this will be a thriving office hub woven into the local theatre and retail mix for many years to come.” Pilcher Hershman acted for Derwent London, while James Andrew International advised Sir Lloyd Dorfman. To send feedback, e-mail louise.dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette