Derwent London has bought the 100-year leasehold interest in 230 Blackfriars Road, SE1, for £55m.
The 0.8-acre site, which includes 30 car parking spaces, has medium-term potential for a substantial office-led development.
The site currently comprises two properties, the 1970s Conoco House, which earns £2.1m in rent for its 60,000 sq ft of office space, and a 36-unit residential building called Quadrant House. The 3.5% net initial yield for Conoco is expected to to rise to 4.2% after letting 9,400 sq ft of vacant space. All the current leases are set to expre in 2025, with tenant breaks in 2023. Quadrant House is let until 2074 at a nominal rent. The ground rent is a fixed £5,000 pa.
