A joint venture between UK property fund manager Brockton Capital and listed firm Development Securities has agreed to buy a Notting Hill office and retail block on Kensington Church Street, London for £47.5 mln (EUR 54 mln).

Under the terms of the partnership, Brockton will have a 75% interest in the property with Development Securities retaining a 25% stake. Completion is due to take place on June 23.

The block comprises Newcombe House, a 14-storey office building that includes surface parking for 55 cars, as well as 13 retail units. The partners are in the early stages of evaluating a strategy for the asset with options ranging from a refurbishment of the existing office tower and asset management of the retail accommodation to a comprehensive mixed-use development.

Lewis & Partners acted for the joint venture.

'This acquisition is part of our continued strategy to use our asset management expertise and equity to seek out high quality assets that offer maximum optionality going forward,' said Matthew Weiner, executive director of Development Securities.

He added: 'The Kensington Church Street block is in an absolutely prime location and provides an extremely flexible built form, with a number of strategies for repositioning and adding value. Having already let a vacant floor within the office tower, we think there is potential for further office lettings as part of an on-going asset management strategy.'