Transport for London’s finance committee has approved proposals to sell the leasehold of its iconic offices at 55 Broadway, SW1.
The building was previously TfL’s head office, before it moved into new offices at Endeavour Square in Stratford, E15, last year. However, some of its departments still occupy 55 Broadway.
The long leasehold interest will include the ground floor retail units, but not the ticket hall and other operational property. The disposal will not affect London Underground operations at St James’s Park Station.
A programme of works to separate operational elements from the office areas began at the end of 2018.
TfL will provide either vacant possession on completion, or take a short leaseback for a maximum of 12 months.
The site was initially earmarked for residential redevelopment in 2013. However, in 2017 TfL decided against this, and outlined plans to sell it as an office investment via a sale–and-leaseback arrangement.
A previous decision to grant a long leasehold interest had been approved by TfL’s finance committee in January 2017, comprising a maximum leaseback term of 20 years while excluding the retail units. But TfL said the sale was deferred at the time since “alternative sources of capital” were available.
Graeme Craig, director of commercial development at TfL, said: “As part of our wider estate management strategy, we are seeking to reduce our office accommodation costs, especially in central London.
“We have specifically examined the options for the office buildings complex at 55 Broadway, including 100 Petty France and Wing Over Station, and seek to dispose of these by offering a long single leasehold to the open market, to deliver best value for money.
“Our investment strategy will see us undertaking a small number of similar targeted disposals, while we concentrate our property development activity on programmes such as build to rent across greater London, which will enable us to generate ongoing revenue and provide the high levels of affordable housing that the capital desperately needs.”
TfL said it was on track to deliver savings of £110m on office accommodation by 2022, which will be reinvested into the transport network.
55 Broadway, which is a Grade I listed building, was built in 1929 and was London’s first skyscraper. Wing Over Station was built in 1930, and 100 Petty France in 1970.
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