Great Portland Estates and Scottish Widows have joined forces to develop two central London office schemes
The pair have formed a 50:50 joint venture that will own and develop Great Portland's scheme at 179-202 Great Portland Street and the properties owned by Scottish Widows at 79/97 Wigmore Street, 25/27 Duke Street, 35/37 James Street and 1/7 Picton Place, which form an island site.
Great Portland will also contribute £5m in cash and both parties have agreed to commit up to £50m to fund the Wigmore Street redevelopment.
The Great Portland Street scheme will provide 90,000 sq ft (8,361 sq m) of offices and retail and completion is due in December. The scheme's book value, adjusted for capital expenditure, was £51.7m at the end of June.
It will be completed by Great Portland under a development agreement with the joint venture, which will take on letting and market risk, although construction cost risk will remain with Great Portland.
The Scottish Widows buildings comprise 97,300 sq ft (9,039 sq m) of office, retail and residential space with an annual rent of £3.5m and a book value of £63.1m.
Great Portland will advise the joint venture on asset and development management under a property management agreement.