Derwent London, the property giant, has announced the acquisition of the South West Wing of Bush House for £13.5m.
The company already owns the freehold for the office that faces the Strand. Derwent will be purchasing the building with a vacant possession, meaning any current occupant will move out.
It is a further investment in the building from Derwent, who say that combining this with their December 2020 freehold valuation comes to £51.8m, or c.£500 per sq ft.
They have appointed architects Stiff and Trevillion for the refurbishment and extension of the existing building.
The London-based property investors say that this could increase the lettable area c.130,000 sq ft. The building work could start in 2022.
The company is banking on a return to offices for large firms, perhaps encouraged by their own recent deal with Fora, a 15 year lease with no break period.
Paul Williams, Chief Executive of Derwent London, commented: “This acquisition accelerates our refurbishment ambitions for this exciting site as well as creating immediate marriage value for the Group.
We intend to restore our part of this London landmark to the prominence it deserves, ensuring the most modern, adaptable and sustainable design-led offices.”