Derwent London buys headlease interest in Bush House for £13.5m

Derwent London on Monday said it had bought the outstanding seven-year headlease interest in the South West Wing of Bush House for £13.5m before costs.

The group already owns the freehold of the office building facing the Strand and is buying the building with vacant possession. Combining the purchase and the December 2020 valuation of the group's freehold interest equates to £51.8m or c.£500 per sq ft, Derwent said.

Architects Stiff & Trevillion have been appointed for the refurbishment and extension of the existing building which, subject to planning, could increase the lettable area to 130,000 sq ft with a possible start in 2022.

"This acquisition accelerates our refurbishment ambitions for this exciting site as well as creating immediate marriage value for the group. We intend to restore our part of this London landmark to the prominence it deserves, ensuring the most modern, adaptable and sustainable design-led offices," said chief executive Paul Williams.