Orion and development partner Quadrant Estates will refurbish the 120,000 square-foot (11,150 square-meter) office block at 50 Victoria Embankment, the company said in a statement today. The property, bought from clients of Aberdeen Asset Management Plc (ADN), will be worth 120 million pounds ($186 million) when the work is done, Orion estimated.
The amount of new and refurbished office space leased in London last year was the lowest in a decade, hurt by a shrinking financial-services industry, real estate broker Drivers Jonas Deloitte said in May. Developers including London-based Orion are betting that businesses will choose less expensive refurbished space over new buildings when their existing leases expire. Work on the Victoria Embankment building should be finished in 2014, according to the e-mailed statement.
London has a limited supply of prime office space “and this location is increasingly seen by many occupiers as a viable alternative to the West End,” Tristram Gethin, managing director of London-based Quadrant Estates, said in the statement. “We are expecting demand from occupiers looking for first class offices in a prime riverside location.”
Rents for the best space in the City of London are about 55 pounds a square foot compared with approximately 95 pounds a square foot in the West End, broker Jones Lang LaSalle Inc. (JLL) said in March.
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