Development Securities has announced that it has secured an option agreement on Algarve House, a vacant, derelict office building on The Cut adjacent to Southwark underground station for £8.0 million for the development of an office-led regeneration project.

The option agreement will be paid in phases over the next 18 months with an initial payment of £2.3 million having been made.

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Algarve House is in a prominent location in Southwark, a significant growth area of London which is well connected and shows strong demand for prime office development. Development Securities is exploring options to secure additional land to maximise the development potential of the site. The masterplan for the site is currently being developed and a planning application is expected to be submitted in Q3 2014.

The development at Southwark will add to the Company's track record of office-led regeneration schemes, having recently completed the first of two prime office buildings in Hammersmith, another established and well-connected office location on the fringe of Central London which has seen a shortage of new office supply in the past ten years.

(CD/MH)