Savills has completed the sale of the long-leasehold interest in 34 Berkeley Square in Mayfair, London, for a price reflecting more than £5,000/sq ft.
34 Berkeley Square
Savills, appointed to sell the offices in October, said the buyer was an unnamed private European investor for owner-occupation purposes following a “highly competitive bidding process”.
The price is believed to be a record for an office building in the UK on a per-square-foot basis.
Built in 1880, the building has 4,255 sq ft of prime office space over lower-ground, ground and four upper floors, which at £5,000/sq ft would equate to £21.3m.
The self-contained headquarters building was formerly owned and occupied by GSK.
James Purdon, director in Savills’ central London investment team, said: “This outcome illustrates how significantly – and rapidly – the price of high-quality assets can be impacted when genuine scarcity, international exposure and intense competition are combined.
“Berkeley Square is among the most sought-after global property destinations and will be enhanced further following the near-term arrival of both Chanel’s and Blackstone’s European headquarters.”
Savills said the offices were the first in Berkeley Square to be marketed in more than a decade.
The property, which offers views over Berkeley Square, benefits from an unrestrictive headlease provision permitting residential use, subject to planning permission, the agency said last year when marketing the asset.
The virtual freehold interest has 131 years unexpired at a peppercorn ground rent and the property was sold with full vacant possession.
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