South Bank office building changes hands for £87 million

Development Securities and Proprium Capital Partners have acquired the long leasehold of Becket House in Lambeth Palace Road.

The 40-year-old 12-storey office building is let on a 12.5 year unexpired lease to EY (formerly Ernst & Young).

Guy's and St Thomas' Charity own the freehold to the property and 137 years remain on the long leasehold.

A decade ago the building was valued at £76.9 million.

Michael Marx, Chief Executive, Development Securities PLC said: "Today's acquisition presents an excellent investment in a Central London office building that benefits from a secure, long-term income stream.

Becket House is in a prominent location within easy access to several major transport links and with views over the River Thames, within an area that is undergoing significant change and regeneration.

"A number of redevelopment options may also be considered over the medium to long-term in order to add value to our investment."

Philipp Westermann, Proprium's head of Europe, said: "Similar to our recent investments in Delhi and Edinburgh, this acquisition is part of our continued strategy to back best-in-class real estate operators in unlocking value in high quality assets in city centre locations.

"We are excited to partner with Development Securities, who has the vision and capabilities to take advantage of the optionality that this property offers."