“This is a landmark acquisition for our business and one that secures a true trophy asset which represents a major step forward in the evolution of our commercial development strategy”
– Mahir Vachani, – BPS London Developments
BPS London and Purestone Capital have completed a £32.6m acquisition of a 43,300 sq ft office building on Tottenham Court Road, positioning the deal as the foundation of a new value-add development platform focused on refurbishment-led returns.
The purchase price of £755 per sq ft reflects a strategy centred on upgrading existing stock rather than pursuing ground-up development. The two private investors, led by Mahir Vachani and Rishi Khurana, exchanged contracts shortly after securing exclusivity on the asset at 80–85 Tottenham Court Road, following a competitive sales process with Derwent London plc.
The transaction highlights continued lender and investor appetite for prime West End assets where capital expenditure can be deployed to improve income resilience and long-term value. Advisors on the deal included Hanover Green as investment agent and Clyde & Co as legal adviser.
The building will undergo a comprehensive refurbishment programme designed to reposition it for occupiers seeking higher-quality workspace. Planned upgrades include:
new end-of-journey facilities
replacement of mechanical and plant systems
creation of a 1,700 sq ft private terrace on the first floor
potential addition of a communal roof terrace, subject to approvals
From a development finance perspective, the strategy relies on balancing refurbishment costs against future rental growth in a sub-market where demand continues to exceed supply. Conversion of older offices to alternative uses and years of underinvestment have constrained the availability of fit-for-purpose space across the West End, particularly for occupiers with higher specification requirements.
Fitzrovia has emerged as a key location for businesses spanning creative industries in Soho, professional services and companies linked to the Knowledge Quarter around King’s Cross. This breadth of occupier demand underpins underwriting assumptions around lease-up and exit values following refurbishment.
The acquisition also marks the formal launch of a value-add platform for the two groups’ development arm. Their founder-led structure allows discretionary capital deployment and faster decision-making, a model intended to respond to changing market conditions and opportunities created by asset repricing.
“This is a landmark acquisition for our business and one that secures a true trophy asset which represents a major step forward in the evolution of our commercial development strategy,” said Mahir Vachani, director at BPS London Developments (pictured). “Since the return to the physical workplace following the pandemic, there has been a clear mismatch between what today’s workforce expects from office space and what much of the existing stock is currently delivering.”
“While attendance has recovered strongly, many buildings have not kept pace with modern requirements around design, technology, flexibility and wellbeing. This project gives us the opportunity to address that imbalance directly by delivering a high-quality, future-proofed workspace in one of London’s most prominent business locations.”
“We remain highly confident in the long-term fundamentals of the West End and see significant opportunity in upgrading underutilised assets to best-in-class standards.”
From Purestone Capital’s perspective, the deal reflects a focus on capital preservation and income durability rather than short-term trading.
“This acquisition reflects our shared belief in the long-term resilience of prime London office markets and the importance of investing in quality,” said Rishi Khurana, principal at Purestone Capital.
“By combining strong fundamentals, a prime location and a comprehensive refurbishment strategy, we believe this project will deliver a highly attractive proposition for life sciences, financial, professional services and creative industries. I am excited to launch our value-add platform with BPS on such a significant development.”
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