Development Securities has secured an option to buy a site next to Southwark Underground station in London for an office scheme.
It will pay £8m to buy Algarve House, a derelict office building, with an initial payment of £2.3m and the rest to be paid over the next 18 months.
Development Securities is looking at buying more land to expand the scheme. The masterplan for the project is being developed and a planning application is likely to be made in the third quarter of 2014.
Development Securities director Julian Barwick said: “We see Southwark as a strong market for office development and the site is extremely well positioned, being adjacent to Southwark underground and close to Waterloo.”