London’s prime market has received an early new year boost with the news that a prestigious site in the heart of the capital has been sold for redevelopment.
US property investors Hines have bought 354-358 Oxford Street from Transport for London (TfL) for around £41m and are planning a retail and residential project with architects Fletcher Priest. Shops will be built on the basement, ground and first floor levels, while 11 one to three-bedroom apartments will occupy the upper floors.
The site is opposite Bond Street station in the middle of London’s world-famous shopping area. The tube station was recently upgraded to provide step-free access and will also be served by the new Elizabeth Line – also known as Crossrail – which is due to open later in 2019.
‘A sought-after location’
“Securing one of the most sought-after prime locations in the West End of London represents a milestone transaction for Hines,” said Jake Walsh, Director of Hines UK, “demonstrating our capability to source and convert the most attractive opportunities in an incredibly competitive market. We look forward to delivering a prestigious scheme in keeping with its location.”
TfL intend to sell other key central London sites to help fund Build to Rent projects further out from the centre.
“We are delighted to have concluded this transaction at a prime West End location, which will provide a significant return to reinvest in the transport network,” said Graeme Craig, TfL Director of Commercial Development.
“Our investment strategy will continue to see us undertaking a small number of targeted disposals whilst we concentrate our own development activity on Build to Rent in outer London to generate ongoing revenue as well enabling us to provide high levels of affordable housing.”
The news is welcome for the London prime market, coming during a period of uncertainty in the lead-up to Brexit. However despite a gloomy outlook, reports from Savills and JLL late last year saw signs of life and tipped the higher end of the property market in the capital to recover over the coming years.
