BPS London and Purestone Capital have acquired a 43,300 sq ft office building at 80-85 Tottenham Court Road for £32.6 million, marking the launch of a value-add development platform focused on refurbishment projects.
The purchase price of £755 per square foot reflects a strategy targeting existing stock upgrades rather than ground-up development. The building was acquired from Derwent London plc following a competitive sales process, with Hanover Green acting as investment agent and Clyde & Co providing legal advice.
Refurbishment plans
The building will undergo a comprehensive refurbishment programme designed to meet current occupier requirements. Planned works include new end-of-journey facilities, replacement of mechanical and plant systems, creation of a 1,700 sq ft private terrace on the first floor, and potential addition of a communal roof terrace subject to planning approvals.
The strategy relies on balancing refurbishment costs against anticipated rental growth in a sub-market where supply constraints persist. Conversion of older offices to alternative uses and underinvestment have reduced the availability of higher-specification space across the West End.
Market context
Fitzrovia has attracted businesses from creative industries, professional services and companies linked to the Knowledge Quarter around King’s Cross. The location’s occupier diversity underpins lease-up assumptions following the refurbishment.
“This is a landmark acquisition for our business and one that secures a true trophy asset which represents a major step forward in the evolution of our commercial development strategy,” said Mahir Vachani, director at BPS London Developments.
“Since the return to the physical workplace following the pandemic, there has been a clear mismatch between what today’s workforce expects from office space and what much of the existing stock is currently delivering. While attendance has recovered strongly, many buildings have not kept pace with modern requirements around design, technology, flexibility and wellbeing,” Vachani added.
Investment approach
Rishi Khurana, principal at Purestone Capital, said the acquisition reflects a focus on capital preservation and income durability. “This acquisition reflects our shared belief in the long-term resilience of prime London office markets and the importance of investing in quality. By combining strong fundamentals, a prime location and a comprehensive refurbishment strategy, we believe this project will deliver a highly attractive proposition for life sciences, financial, professional services and creative industries.”
The transaction highlights continued lender and investor appetite for prime West End assets where capital expenditure can be deployed to improve income resilience. The founder-led structure of both groups allows discretionary capital deployment and faster decision-making in response to market conditions and opportunities created by asset repricing.
