Shaftesbury to buy Berwick Street leasehold

FTSE 250 real estate investment trust Shaftesbury has entered into a contract with PMB Holdings to acquire a long-leasehold interest in 90-104 Berwick Street, London W1, at £38.5m.

Located at the southern end of Berwick Street, the property is currently being redeveloped to provide 12,500 sq. ft of retail, a 5,500 sq. ft. supermarket, a 2,000 sq. ft. restaurant and a 110 bedroom hotel. Both the hotel and supermarket have been pre-let.

The completion of the acquisition is expected to be triggered in late 2018, when the redevelopment is due to complete.

Chief executive Brian Bickell said: "We are pleased to have secured this strategic acquisition, which materially increases our ownership of Berwick Street frontages to 50%. Once completed, it will enable us to accelerate our long-term strategy on this important north-south route in the heart of Soho.

"We expect Berwick Street, which is currently in the final phase of major public realm improvements, to benefit from a significant increase in footfall from the opening of the Elizabeth Line and Tottenham Court Road's new ticket hall on Dean Street in December 2018. We are excited by the medium and long-term prospects for this important location."