Derwent London returns to UK commercial property market

Property company Derwent London has returned to the UK's commercial property market for the first time in three years with the £147 million purchase of Central Cross on London's Tottenham Court Road.

The company bought the property from Glebe Holdings, a group backed by HBOS's investment arm, Bank of Scotland Corporate.

It has been speculated that the deal could reflect a move by the banks to begin selling the commercial property assets on their books.

"This acquisition provides strong income at economic rental levels, together with opportunities for active management, future refurbishment and improvement of the office space, which Derwent specialises in," chief executive John Burns said.

"We will also be looking to enhance the retail units fronting Tottenham Court Road, which will benefit substantially from nearby infrastructure improvements including Crossrail."

Central Cross, a 251,000 sq ft retail and office property at 18-30 Tottenham Court Road and 1-2 Stephen Street, is situated on a 2.1-acre site.