Developer Derwent London swooped for another property in Victoria today, as it looks to capitalise on the burgeoning popularity of the area in the eyes of tenants.
Derwent has spent £29.1 million on Francis House, a 57,000 sq ft block south of Victoria Street currently let to Channel Four. The firm also owns adjacent Greencoat & Gordon House, so the acquisition gives it control of most of an island block covering approximately 1.2 acres.
The rise and rise of Victoria comes as high rents and a lack of supply of office space in the West End forces tenants to look for alternatives. Upmarket fashion chain Burberry is expanding its footprint in the area after taking up the whole of Derwent’s Page Street building.
Rival Land Securities is pressing ahead with its £1 billion Victoria Circle redevelopment near the station after hooking up with a Canadian pension fund earlier this year.
Derwent chief executive John Burns said: “At one stage Victoria had no occupiers except Government tenants and oil companies but now there’s retail there, the technology and media companies are going there because it’s better value than the West End and it’s got great communication links.”
