Aviva Investors has agreed to sell its stake in the successful mixed-use project in order to reinvest the capital elsewhere in London.
Aviva Investors’ MD, Richard Jones said: “The sale allows us to crystallise these development profits and provides funds for our ongoing Central London development pipeline.”
The new West London office complex forms part of a wider project that falls within the Paddington Special Policy Area. Situated on a triangular site bounded by the elevated Westway (A40), the Grand Union Canal and the train platforms of Paddington Railway Station, this regeneration project is projected to deliver ten million square feet of commercial and residential space by 2018.
British Land will now capitalise on the progress that Development Securities and the project’s other pioneers have made to transform the redundant docks into a vibrant waterside workplace that offers Grade A office accommodation surrounded by landscaped gardens and piazzas. Norway’s Statoil, Kingfisher plc, and Clydesdale Bank are among the blue-chip tenants that have already been attracted to rent office space in Paddington Central.
In addition to the completed and tenanted elements of this West London Business Centre, British Land intends to build two more offices, as the original developers have already received planning consent for a further 355,000 sq ft of W2 office space at 4 and 5 Kingdom Street. The new owner has indicated that it will seek to optimise the development value of these sites before commencing construction in 2014.
British Land’s Head of Offices, Tim Roberts said: “With the benefit of improving local infrastructure, the regeneration of Paddington as a whole, plus our ability to improve and complete the estate, I am confident we can take Paddington Central to the next level and in the process, deliver attractive returns.”
Once all works are complete, British Land will own 1m sq ft at the Paddington Business Centre.