British Land has entered into a corporate agreement to purchase Clarges House, 6/12 Clarges Street and 82/84 Piccadilly in Mayfair based on a property price of £129.6 million.

The site is located on Piccadilly overlooking Green Park, and is close to the Ritz and Bond Street. The acquisition is expected to complete in November 2012.

Both buildings are freehold and together comprise over 119,000 sq ft of existing office and retail space. 82/84 Piccadilly comprises approximately 84,600 sq ft and is let until December 2012. Clarges House totals 34,700 sq ft of offices and is currently vacant. Adjoining the two is the Kennel Club at 1-5 Clarges Street which is freehold and owner occupied.

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British Land intends to redevelop the entire site to create a landmark mixed-use scheme. Planning consent was granted in April 2011 for redevelopment of the site to comprise 191,000 sq ft net. The scheme, designed by Squire & Partners, includes 63,000 sq ft of luxury private residential units fronting Piccadilly with 7,900 sq ft of retail below, 91,000 sq ft of high quality offices in a separate block, and a new Kennel Club building. Design and planning work is already underway to improve the existing consent.

Tim Roberts, Head of Offices at British Land, said: "I am excited by this unique opportunity to buy nearly an acre of land in Mayfair, where we can leverage our financial and development expertise to add value. The scale of development will create a landmark building and will further enhance British Land’s presence in the West End."

(CD)