Land Securities has agreed to buy the leasehold interest in a 1.9 acre site at 21 Moorfields, EC2 for £16.5m.
The site comprises empty 1970s offices next to Moorgate tube station and a Transport for London (TfL) worksite from which the western entrance to the new Liverpool Street Crossrail station is being built.
It has submitted a planning application for two new office blocks totalling approximately 500,000 sq ft.
Land Securities entered into a conditional agreement to acquire the site in December 2012 but had to jump through some hoops to close the deal. It has since acted as asset manager for EY, the administrators of Souzel Properties Ltd (in Administration), the current leasehold owners. To finalise the purchase, Land Securities had to agree a new development head lease with TfL and conclude compulsory purchase compensation arrangements on behalf of the administrator for land required by Crossrail for its development.
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At the point of committing to construction, TfL will have the option of participating in the development with a financial interest of 15-25%.
Land Securities managing director, London portfolio, Colette O'Shea said: "This is a site with fantastic potential and superb connectivity, located in the heart of the City, adjacent to Moorgate station and the western entrance to Liverpool Street Crossrail station."
TfL director of commercial development Graeme Craig said: "This deal with Land Securities is a fantastic example of the work we're doing to make the most of our assets whilst generating long-term revenue for us to reinvest back into our network. Our partnership will enable the development of office space in the heart of London as well as retail space."
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