Property giant Derwent London has announced the acquisition of two properties around University College London and a joint venture with Lazari Investments to acquire three more buildings in Baker Street.

Derwent London exchanged contracts for two properties totalling 182,100 sq ft located in the so-called knowledge quarter for £214.6m.

The freehold office building at 250 Euston Road is let to University College London Hospital on a lease that expires in 2039 with rent currently at £4.7m per year.

The nearby the freehold office and retail building on 171-174 Tottenham Court Road is also being acquired. It is located opposite Derwent London’s Network Building, totals 16,200 sq ft and produces an income of £0.6m.

Both acquisitions form a strategic holding in the area, with longer term development potential.

Derwent London also announced a joint venture with Lazari Investments in Baker Street, aquiring three properties totalling 122,200 sq ft owned by the investment group for £64.4m.

The buildings on 38-52, 54-60 and 66 Baker Street sit opposite of Derwent London’s current mix-use project on 19-35 Baker Street. Their passing rent is £5.2m per year, with leasehold interests ranging from 38 to 46 years. 

With a forth building owned by The Portman Estate, these buildings form a one acre island which the company says is capable of significant redevelopment.

Paul Williams, chief executive of Derwent London, said: “These are exciting acquisitions in a strong market. We are further investing in central London’s Knowledge Quarter with potential Life Science opportunities and extending our development pipeline.”

The real estate investment trust owns 81 buildings in a commercial real estate portfolio mostly in central London, worth £5.4bn. The company also announced its purchase of the South West Wing of Bush House for £13.5m last week.