British Land has purchased 39 Victoria Street from Aviva investors for a sum of just over £40 million. The acquisition has been described as a ‘milestone’ by commercial property pundits, as it is the first property that the company has bought in Central London for over two years.
British Land’s Tim Roberts commented: “The purchase fits in well with our strategy of balancing the office portfolio and increasing our weighting in the West End.”
The news is significant because British Land has until recently taken a more conservative approach, restructuring debt and strengthening its balance sheet with sales rather than looking to find new property.
However, the consensus is now that a recovery is under way, and there are substantial profits to be made from the currently depressed property prices, particularly in the capital. Shares in British Land rose 4% on the news.