Derwent London said yesterday it has snapped up an office block at the heart of the capital’s fintech district in Aldgate at the same time as it announced its first lettings at the White Collar Factory scheme in Old Street.
The developer has bought Aldgate Union on Whitechapel High Street from the Royal Bank of Scotland for £132m. This is significantly above the initial guide price of £85m after a heated bidding contest.
London’s thriving tech sector has led to a resurgence in building activity to the east of the city, with developers scrambling to cash in on the demand for both office and residential space.
Derwent said the acquisition of the eight-storey office building “demonstrates the group’s commitment to London’s rapidly improving Tech Belt, and its confidence in the strong levels of occupier demand”.
The building will be let to several businesses following a revamp.
Separately, Derwent has signed up its first two tenants at the White Collar Factory, an office development at Old Street roundabout.
Flexible workspace provider The Office Group will take 41,300 sq ft while structural engineers AKT II have pre-let 28,400 sq ft.