The revamp of London's West End is set to continue after real estate investment trust Shaftesbury snapped up a long-leasehold interest in a Soho property.
The Reit has agreed to pay £38.5m for 90-104 Berwick Street, London W1, close to the new Tottenham Court Road Crossrail station.
The firm plans to redevelop the property to provide 12,500 sq ft of retail, a 5,500 sq ft supermarket, a 2,000 sq ft restaurant and a 110 bedroom hotel. Both the hotel and supermarket have been pre-let, Shaftesbury said.
The redevelopment is expected to complete in late 2018.
"We are pleased to have secured this strategic acquisition, which materially increases our ownership of Berwick Street frontages to 50 per cent," said Brian Bickell, Shaftesbury chief executive.
"Once completed, it will enable us to accelerate our long-term strategy on this important north-south route in the heart of Soho.
"We expect Berwick Street, which is currently in the final phase of major public realm improvements, to benefit from a significant increase in footfall from the opening of the Elizabeth Line and Tottenham Court Road's new ticket hall on Dean Street in December 2018. We are excited by the medium and long-term prospects for this important location."
Berwick Street has been subject to a lot of change in recent years, although not all proposed modifications have been welcomed - earlier this year, plans to privatise the Berwick Street market were called off by Westminster City Council after a campaign supported by actress Joanna Lumley, among others.