Kier Property, in a joint venture (JV) with Investec Structured Property Finance, has acquired a vacant building in London.

A £55m deal was agreed with British Airways Pension Trustees to purchase 31-36 Foley Street in Fitzrovia.

The 34,000 sq ft building was originally built in the 1920's and is centrally located behind the BBC on Regent Street.

Until recently, it was occupied by the broadcaster as the headquarters of its commercial division.

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Plans for the building include a major office refurbishment and development.

In addition to its JV role, Investec is providing debt as part of a £55m (70% LTC) debt facility, which includes funds for the acquisition and future development of the property.

Kier Property Managing Director, Leigh Thomas, said: "This purchase represents an excellent opportunity to acquire a freehold building in the heart of the West End. We are delighted to complete the purchase in joint venture with Investec."

Hayley Scott of Investec added: "This is a fantastic and unique opportunity for Investec Structured Property Finance to once again partner in joint venture with Kier.

"The deal enables both parties to capitalise on the current lack of West End Grade A office space, as well as the projected rental growth and the Crossrail story."

Michael Elliott LLP advised Kier on the acquisition.

(LM)