The 36,345 sf building, at the junction with Borough High Street and directly opposite the entrance to Borough underground station, lies close to the proposed 1,000-ft Southwark Tower development where CLS has a 33% stake alongside Irvine Sellars. It is let to Conoco for 32 years from 1979, expiring in June 2011 with a rent review in June 2004. The current rent is £725,000 ($1.07 million) per annum, which equates to approximately £19.95 ($29.33) per sf.

CLS believes the property, which occupies a large site, has the potential for redevelopment with up to 80,000 sf of offices. Executive chairman Sten Mortstedt, said: 'This acquisition marks our return to buying in the UK after three busy years expanding in Europe. Decreasing interest rates have made the UK market more attractive and we are now actively looking for further acquisitions within Greater London'

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM Digital Member, you’ll receive:

  • Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Office