British Land has bought a site on Baker Street from construction company McAleer & Rush for £29 million. They will use the land for redevelopment, retaining the firm a contractors whilst they act as development managers.
The site, at 2 to 14 Baker Street, is currently occupied by an existing 1950s building, which is almost vacant. This will be demolished to create a new scheme comprising around 140,000 square feet of London office space, as well as retail units on the ground floor, at a cost of around £100 million.
One curiosity of the sale is that McAleer & Rush bought the same site from British Land five years ago – for around double the price. The land was purchased in March 2005 for just over £57 million, substantially more than its apparent value.
British Land’s reacquisition of the land for around £200 per square foot, on the other hand, represents excellent value for money.
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