Sunley Group has exchanged contracts to buy Harcourt House on Cavendish Square for around £75m from LaSalle Investment Management for a residential scheme.
The purchase is above the asking price of £60m, reflecting a yield of around 3%, and is thought to have been made through special purpose vehicle Harcourt Investments.
Originally developed in 1907 as a residential mansion block, Harcourt House has since been converted into a number of residential, office and medical suites.
The eight-storey Edwardian building overlooks the square, with 56,562 sq ft of commercial space and 7,419 of residential.
A review conducted by Brimelow McSweeney Architects for prospective buyers proposed a residential scheme that could reach around 74,000 sq ft of floor space and a total of 76 new residential dwellings.
The building is let to 17 tenants, with full vacant possession is available in December 2015.
Sunley is a privately-owned family business, established in the 1920s, and continues to operate in London and the south of England.
Over the years, it has been involved in a number of landmark overseas developments including the Dubai International Trade & Exhibition Centre in Abu Dhabi in 1979.
Nick Howitt, director at LaSalle Investment Management said: “We can confirm that LaSalle Investment Management has sold its 63,000 sq ft residential asset, Harcourt House. We are delighted to have been able to capitalise on the continuing momentum of London’s residential market, at a level that reflects the building’s premium potential.”
Whitmarsh Holt Young, Jones Lang LaSalle and Savills acted for LaSalle Investment Management on the sale. Tudor Toone represented the purchaser.