Real estate investment trust Redefine International has exchanged contracts to sell St Anne’s House, Croydon to a Guernsey registered fund for GBP8.4m, GBP3.4m above the property’s 31 August 2013 book value.
St Anne’s House is a vacant 75,000 sq ft 1960s office building previously occupied by the UK Home Office which formed part of the legacy government portfolio acquired by Redefine International through its merger with Wichford in 2011.
The sale follows the receipt of planning permission in September 2013 for a redevelopment of the office building into a 144 bed hotel, together with 46 residential units situated on the upper floors of the property.
The property is located opposite the much anticipated redevelopment of the Whitgift shopping centre in Croydon and will form part of the regeneration of this area.
Mike Watters (pictured), chief executive of Redefine International, says: “Following the successful implementation of our business plan, we are pleased to have made this disposal which will enable us to recycle the proceeds into other areas of our portfolio. As the investment and development market improves, we are assessing a number of other assets across the portfolio which offer the potential to benefit from initiatives such as securing change of use, enabling us to realise additional value for shareholders.”