Kier Property successfully beat a number of other major developers to acquire the freehold of the existing 33,000 sq ft building and will begin development of the scheme after vacant possession is obtained in March 2014. The new building will provide around 59,400 sq ft of sought after Grade A space for the Hammersmith office market which has seen strong rental growth over the past five years, with rents increasing 35% since 2008 and office take-up in 2011/2012 above the long-term average.
Development perfectly timed for Hammersmith office market
Robert Neaverson, South Region Development Director at LSH, commented: “This development is perfectly timed for the Hammersmith office market, which currently has less than 12 months’ supply with a limited pipeline of new developments.”
£300m of deals to deliver 1m sq ft of new space
The acquisition follows a very active few months for Kier Property which has transacted over £300m of deals that will deliver over one million square feet of new space across the country. Deals have included a 40,000sq ft retail and industrial scheme in Bracknell, a 24,000sq ft office development in Birmingham and a 64 acre mixed-use regeneration project in Watford.
Kier's largest purchase in West London office market
Leigh Thomas, Director at Kier Property, said: “This is our largest purchase in the West London office market to date and forms part of our big acquisition drive in the capital. It follows the acquisition of 34,000sq ft of prestigious office accommodation at 58 Victoria Embankment from the City of London Corporation at the end of last year which will be redeveloped, subject to planning consent, to expand our presence in the London office market to over 100,000 sq ft.
"It demonstrates Kier Property’s ability to purchase sites without the need to seek external finance, underpinning our reputation as an ambitious business, eager to do deals."