British Land has entered into an agreement with The Portman Estate to purchase and redevelop Marble Arch House, W1. On receipt of vacant possession, British Land will pay £18 mln (EUR 21.6 mln) for the development site.

The deals is a further boost to British Land’s significant central London office development programme. These developments, which will deliver 2.2 million sq ft (204,386 m2) of high-quality space in London by 2014, include a new 700,000 sq ft building for UBS at Broadgate; the 610,000 sq ft Leadenhall Building in London’s insurance district; and the 500,000 sq ft NEQ building, which will complete the Regent’s Place estate in the West End. The aggregate development cost, including land and interest is expected to be £1.6 bn, of which British Land’s share is £1.1 bn.

Commenting on the acquisition, Tim Roberts, Head of Offices at British Land said, ' We are pleased to have secured yet another great development opportunity on The Portman Estate. Marble Arch House will offer high quality accommodation at a time when supply will be limited in a West End location which is being regenerated.'

The new development, designed by Bennett’s Associates Architects, is due to achieve a BREEAM excellent environmental rating. The total cost of development (excluding land and interest) is put at around £40 mln.

Completion is scheduled for mid-2013.