Great Portland Estates has bought two properties off-market from Henderson Global Investors, unlocking a potential 200,000 sq ft redevelopment on London’s Piccadilly, PropertyWeek.com can reveal.

GPE is understood to have bought the long leaseholds on French Railway House on Piccadilly and 50 Jermyn Street from Henderson’s Central London Office Fund for around £35-40m.

The adjoining office blocks are 49,000 sq ft in total and held on 40 year leases from the Crown Estate. The acquisition is strategic for “special purchaser” GPE, which owns the Piccadilly Buildings next door. It also opens up the possibility of a longer term, comprehensive redevelopment involving the Crown Estate, and would be play towards the Crown’s strategy of regenerating the retail, offices, and residential in St James’s.

Off Piccadillly Circus, the Crown is currently redeveloping the St James’s Gateway site in conjunction with Canadian pension fund HOOPP.

For Henderson, it will provide development funds for forthcoming schemes in areas such as Soho and King’s Cross, where it recently let around 80,000 sq ft of space to MacMillan Publishing at its Regent’s Quarter development.

H2SO advised GPE, and BC Commercial advised Henderson.