Development Securities has secured an option to buy an outdated office block next to Southwark tube station in London, paving way for a larger-scale office redevelopment.

The listed developer said today it had secured an option agreement on Algarve House, a vacant, derelict office building on The Cut adjacent to Southwark underground station for £8.0m 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.