LONDON—Almacantar has continued making inroads into central London's office sector, acquiring developments at One and Two Southbank Place from Braeburn Estates, a joint venture between Canary Wharf and Qatari Diar. At over £550 million, or approximately US$857 million, it's said to be the largest property deal ever completed on the city's South Bank.

Consisting of One and Two Southbank Place, Almacantar's acquisition comprises the office component of the Southbank Place redevelopment, which will also have five residential buildings. Work on the redevelopment began last month; it will retain the 27-story Shell Centre office tower that Royal Dutch Shell has occupied since the early 1960s.

Shell has also pre-leased the entirety of One Southbank Place's 272,938 square feet of office space. Two Southbank is being constructed on spec, with a total of 297,678 square feet of office and retail.

Work on the two office towers, which are adjacent to London's Waterloo Station, is scheduled for completion in 2018, with the residential component following a year later. Canary Wharf and Qatari Diar will have full responsibility for the construction and delivery of the buildings.

“We feel that the area around Waterloo Station has the potential to grow into one of the best mixed-use destinations in London, and we are excited to be working with Shell and Braeburn in overseeing the transformation of the area,” says Mike Hussey, chief executive of Almacantar. He calls One and Two Southbank “a worthy addition to our portfolio of high quality assets.” The acquisition is being financed through a loan facility from Cain Hoy.