BPS London and Purestone Capital have completed the £32.6m acquisition of a prime West End office building on Tottenham Court Road marking their first joint purchase.
The 43,300 sq ft property at 80–85 Tottenham Court Road in Fitzrovia was acquired from Derwent London plc following a competitive sales process. The deal reflects a price of £755 per sq ft.
Contracts were exchanged shortly after exclusivity was secured, with Hanover Green advising on the investment and Clyde & Co acting as legal adviser.
The building will now undergo a comprehensive refurbishment programme, including upgraded plant, new end-of-journey facilities and the creation of a 1,700 sq ft private first-floor terrace. Subject to planning approvals, proposals also include the addition of a communal roof terrace.
SUPPLY CONSTRAINTS
The acquisition comes amid continued supply constraints for high-quality office space across central London, particularly in the West End, where underinvestment and change-of-use conversions have reduced the availability of modern stock.
Fitzrovia has become an increasingly sought-after sub-market.
Fitzrovia has become an increasingly sought-after sub-market, attracting occupiers from media and creative firms in Soho to financial and professional services businesses, alongside companies clustering around the Knowledge Quarter in King’s Cross.
The deal forms the cornerstone of BPS London and Purestone Capital’s value-add platform, targeting underutilised commercial assets for repositioning.
LANDMARK ACQUISITION
Mahir Vachani (main picture, inset left), Director at BPS London Developments, says: “This is a landmark acquisition for our business and one that secures a true trophy asset which represents a major step forward in the evolution of our commercial development strategy.
“Since the return to the physical workplace following the pandemic, there has been a clear mismatch between what today’s workforce expects from office space and what much of the existing stock is currently delivering.
“Buildings have not kept pace with modern requirements around design.”
“While attendance has recovered strongly, many buildings have not kept pace with modern requirements around design, technology, flexibility and wellbeing.
“This project gives us the opportunity to address that imbalance directly by delivering a high-quality, future-proofed workspace in one of London’s most prominent business locations.
“We remain highly confident in the long-term fundamentals of the West End and see significant opportunity in upgrading underutilised assets to best-in-class standards.”
STRONG FUNDAMENTALS
Rishi Khurana (main picture, inset, right), Principal at Purestone Capital, adds: “This acquisition reflects our shared belief in the long-term resilience of prime London office markets and the importance of investing in quality.
“By combining strong fundamentals, a prime location and a comprehensive refurbishment strategy, we believe this project will deliver a highly attractive proposition for life sciences, financial, professional services and creative industries. I am excited to launch our value-add platform with BPS on such a significant development.”
