Derwent acquires Brixton office for £38.1m

Derwent London has acquired the 11-storey Blue Star House in Brixton, SW9, for £38.1m. The 53,750 sq ft building is located at 234-244 Stockwell Road, opposite the Brixton O2 Academy, and is predominantly used as offices, including two vacant floors, with a restaurant and leisure space at ground level. The rent on acquisition is £800,000, equating to a low average rent of £14.50 per sq ft for occupied office space. The acquisition price equates to a capital value of £710 per sq ft. There is scope to redevelop the site with a significantly larger scheme. Paul Williams, chief executive at Derwent London, said: “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.”   To send feedback, e-mail lucy.alderson@egi.co.uk or tweet @LucyAJourno or @estatesgazette