Development Securities has paid £8m for Algarve House, a vacant, derelict office building on The Cut next to Southwark underground station.
Development Securities is looking to buy neighbouring land as well to maximise the development potential of the site. A masterplan for the site is being developed and a planning application is expected to be submitted next summer.
Director Julian Barwick said: "We see Southwark as a strong market for office development and the site is extremely well positioned being adjacent to Southwark underground and close to Waterloo. Our proposals for the site draw on our expertise in taking derelict or otherwise redundant land and creating value through a process of regeneration."