Derwent to buy Moorfields Eye Hospital in £200m redevelopment

Derwent London has been chosen to redevelop Moorfields Eye Hospital after striking a deal to buy the site for more than £200m. It will submit plans next year to revamp the City Road Island site, EC1, which has been the headquarters of the Moorfields Eye Hospital NHS Foundation Trust for 122 years. The hospital sits on a 2.5-acre plot near Old Street, which is home to the trust as well as the UCL’s Institute of Ophthalmology. However, both organisations are planning to relocate to a new £350m premises in King’s Cross, N1, which the deal with Derwent will help pay for. Camden Council approved plans for the two-acre eye care and research centre on the site of the current St Pancras Hospital earlier this year, paving the way for the City Road deal. Plans to sell the hospital and its grounds have been in the works since 2013, but the formal marketing process only started this year. Together with the UCL Institute of Ophthalmology, it is the oldest and largest centre for eye treatment in Europe. In its report to the planning committee for the King’s Cross scheme, Camden Council officials wrote that Moorfields’ current buildings at City Road are “no longer fit for purpose”. “This is affecting the quality of care as well as hampering the progression of new research and teaching to further understanding and treatment to tackle diseases of the eye,” it added. The City Road deal remains subject to planning, and will only complete once the new eye hospital in King’s Cross is finished in 2026. Derwent chief executive Paul Williams described it as “a major regeneration opportunity” and noted that it is near many of the developer’s existing holdings in Islington, including the White Collar Factory, Olivers Yard and the Featherstone Building. Martin Kuper, chief executive of Moorfields Eye Hospital NHS Foundation Trust, said the proceeds of the deal would “secure the long-term future of world-leading eye care, research and education in a way that represents value for money”. “We know that staff and patients have formed a strong attachment to Moorfields at City Road over the years and will work with them to make sure that we do justice to honouring its legacy when we move to St Pancras.” CBRE oversaw the selection process. EG understands that a key part of the brief was to ensure that redevelopment proposals would contribute to wider socio-economic benefits for local residents and businesses. Alastair Perks, head of commercial development at the agency, said: “We are delighted by the outcome, and are particularly grateful to all of the high-calibre parties who have participated in a very comprehensive process.” Derwent London owns 81 buildings in a commercial real estate portfolio predominantly in central London. Its holdings were valued at £5.4bn earlier this year. To send feedback, e-mail alex.daniel@eg.co.uk or tweet @alexmdaniel or @EGPropertyNews Main image © Jeff Blackler/Shutterstock; secondary image courtesy of Derwent London