Derwent London has exchanged contracts to buy Blue Star House in Brixton for £38m from Lancedrum, a subsidiary of Ireland-based Tubize.

Blue Star House

Blue Star House

The 53,750 sq ft, eleven-storey building comprises multi-let office space, including two vacant floors, with restaurant and leisure accommodation at ground level. The rent on acquisition is £800,000, equating to an average rent of £14.50 per sq ft on the occupied office space. The acquisition price equates to a capital value of £710 per sq ft.

The property, which sits on a 0.7 acre site that includes a surface car park, is located immediately opposite the Brixton O2 Academy.

“We are delighted to have acquired Blue Star House and added Brixton as a location within our portfolio. With its excellent connectivity to the West End, we see this as an exciting addition to our substantial development pipeline,” said Paul Williams, chief executive at Derwent London.

A spokesperson for Derwent added that vacant possession can be achieved in the next few years and that there is scope to redevelop the site with a significantly larger scheme.

BNP Paribas Real Estate advised Derwent while Bray Fox Smith and Montagu Evans advised the vendor.