26 July 2013 – Estate Gazettes

The billionaire Reuben brothers have bought an office block in the heart of Victoria, SW1, for a luxury residential redevelopment.

David and Simon Reuben’s property company has bought Audley House, 13 Palace Street , from charity Buttle UK.

Plans are now being discussed for converting the five upper floors of the 17,500 sq ft building into a £22m residential scheme, with one flat per floor.

The ground and lower ground are likely to be retained as offices.

The circa £10m purchase – a 3% yield – bolsters the Reubens’ foothold in the area, where they already own at least five assets, including the landmark Millbank Tower.

Elsewhere in SW1, Hermes Property Unit Trust is understood to have bought the Liberal Democrats’ HQ at 8-10 Great George Street in an off-market deal.

Hermes paid German landlord HansaInvest close to £42m for the 54,000 sq ft fully-let property, just off Parliament Square.

Victoria is undergoing a major transformation, with Land Securities among the big names at the forefront of a number of redevelopments. There is 2m sq ft of office space and 500,000 sq ft of residential recently completed or under way in the area.

Tuckerman advised Buttle; Jones Lang LaSalle represented HansaInvest. All parties declined to comment.