British Land has announced that it has entered into an agreement with The Portman Estate to purchase and redevelop Marble Arch House. On receipt of vacant possession, British Land will pay £18 million for the development site.

Marble Arch House is on the corner of Seymour Street and Edgware Road, located within Portman Village and a short walk from Oxford Street and Hyde Park. The existing site consists of two mixed use five storey buildings, 32-50 Edgware Road and 62-64 Seymour Street.

The new development, which has detailed planning consent, has been designed by Bennett’s Associates Architects and will deliver exceptional quality office, residential and retail space. The development has been designed to achieve a BREEAM excellent environmental rating.

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The new building will comprise 60,000 sq ft of high quality office accommodation together with 15,000 sq ft of retail space. Adjacent to the new office building will be a development of ten luxury residential apartments with a 5,000 sq ft restaurant unit at ground level built behind the retained period Victorian facade of 62-64 Seymour Street. The total cost of development (excluding land and interest) is expected to be around £40 million.

Demolition and ground works are expected to start in mid-2011 with practical completion scheduled for mid-2013. On completion of the development, British Land will be granted a new 125 year leasehold interest on the commercial element of the development and a separate long leasehold on the residential units.

Commenting on the acquisition, Tim Roberts, Head of Offices at British Land said: "We are pleased to have secured yet another great development opportunity on The Portman Estate. Marble Arch House will offer high quality accommodation at a time when supply will be limited in a West End location which is being regenerated."

(CD/GK)